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Investment Fraud
By Money Sick | March 10, 2009
Times are very bad now. Several years ago, we have many financial advisers and bank officers who approached any potential suspects to turn them into their prospects. In order to earn fast money, many bank officers ‘advised’ their bank customers to re-invest their hard earned savings when the bank customers wish to withdraw their money out of their bank accounts. This happened to my family members, and some of my insurance customers as well.
The easy targets are usually the illiterate, or not so highly informed about investment personnel (those people who have no knowledge about stocks and shares). And these people trust the bank so much. However, some of the bank officers misuse their authority. In order to clinch a deal, they advised the elderly to invest in even high-risks investment instrument and telling them about the high returns they would receive in the end. They however, did not tell them about the negative side of investment (that the returns are not guaranteed, and that the investment involved high-risk). These bank officers just fail to present all the necessary facts to these clients.
This is not the right way to do business, especially dealing with old folks, with their hard-earned money. Investment Fraud or any kind of breach of fiduciary duty, churning or negligence from the agents (bank officers or financial advisers) resulting in losses for the clients should be dealt with. Investment with our hard-earned money need to involve careful consideration. Before you invest, find out what you are investing first and inform your family about it.
Topics: Business, Investment, View All, money | No Comments »
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