What would you do if you checked your financial statements and found that your hard-earned savings have disappeared? We’re going to talk today about how to tell if you’ve been a victim of financial fraud.
Many brokers are great. My broker is great! But, if you lose your hard-earned savings because your broker fleeced you, you absolutely should not be the one who has to suffer the consequences. But, how do you know when something fishy has happened and when you might have a case against your broker?
Here are a few tips to keep in mind.
1. Take a look at your monthly account statement. If it’s as fat as a phone book, that could be because your broker is buying and selling excessively. It’s a process called churning and it doesn’t make money for you; it makes money for him or her.
2. Your broker may put you into what’s called a variable annuity. Variable annuities typically lack liquidity and can tie down your money with surrender penalty periods. These are often pretty high too, as high as 3-4% per year. And, your investment options tend to be limited. What’s the upshot of a variable annuity? Well, a huge payday for your broker but lots of expensive downsides for you.
3. We all know investments have their ups and downs. That’s natural, the way it is, the way it’s always going to be. But, if a broker puts you into an investment that collapses and you start hearing words like fraud and Ponzi scheme, it might be time to talk to a lawyer. You see, it’s your broker’s job to do his or her homework before recommending any investment to you. And if your broker doesn’t, it’s he or she who should pay the consequences and not you.
4. If you suspect something is going on, don’t wait around. You can lose your legal rights to sue if you sit on them for too long. Statutes of limitations see to that. So, pay attention to red flags and consider contacting an investor rights lawyer. Most of them will talk to you for free which is a good investment of your time.
That’s your shot of legal wellness for today. If you’d like to learn more, please subscribe. Until next time, I’m Danny Karon, your Lovable Lawyer.
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