Private Placement Fraud
If you lost money as a result of purchasing promissory notes or debt in a Private Placement, you may be eligible to join a class action lawsuit to recover your losses.
The SEC recognizes a number of red flags for private placement fraud and Ponzi schemes, including:
- Claims of high returns with little or no risk – investment returns of 10% or more should be viewed with skepticism. Claims that it is little or no risk are even more dubious. High rates of return almost always entail high risk, and anyone claiming otherwise probably can’t be trusted.
- Unregistered investment professionals – was the person who offered you the private placement a licensed broker? If you’re unsure look them up on FINRA’s BrokerCheck
- Aggressive sales tactics – scam artists and fraudsters often pitch an investment as a “once-in-a-lifetime” offer to create a false sense of urgency.
- No one else seems to be involved – if the salesperson is not affiliated with a known brokerage firm or investment bank, beware.
- Unsolicited investment offers & advertisements – offers that seem too good to be true usually are. Beware of promoters of getting rich quick investment opportunities advertised on the radio, in print ads or over the internet.
For a free consultation about how you can join a lawsuit and recover your private placement investment losses, without paying any upfront attorney’s fees, fill out the contact form below.