Investment Fraud Defence

If you've been accused of an investment fraud, our expert financial crime solicitors can help

Investment Frauds may arise when a new company or an exciting opportunity is launched that promises a higher than average market return, only for investors to later discover the operation is not what they expected. We assist individuals and companies in investigations concerning allegations of Ponzi or Pyramid Schemes, Boiler Room Frauds and Recovery Room Frauds, Advance Fee frauds and share ramping.

Promising unusually high rates of return, those who run Ponzi or Pyramid schemes will often take the funds from any investment and close shop, walking away with the proceeds. In more sophisticated operations early entrants will receive initial payments that are funded from later investors to give the impression that the scheme is successful.

An advance Fee (or “419” fraud) normally begins when a letter or e-mail is circulated widely to individuals or companies asking them to pay a sum of money as an advance in return for realizing a significantly larger gain at a later point. Advance fee frauds take many different forms and are often targeted at obtain access to an unsuspecting participant bank details. The payoff promised at the end of the transaction never materialises.

Often operated from outside the UK, shares are sold to investors in companies which either do not exist or are not successfully trading in an operation where cold-calling or hard-sell tactics are employed to market shares in companies that are worthless.

Victims of boiler room frauds may be targeted again in a subsequent recovery room operation with a similar modus operandi employing hard sell tactics to offer new stock or to help with selling existing shares.

Share ramping describes a fraud which arises when the price of a company shares is manipulated.

This could occur when a company is brought to the market with false expectations of its profitability, or if shares are purchased in a company at a depressed price before false rumours spread of a potential takeover prompting their disposal at a profit. Other names given to this type of fraud is a 'pump and dump' fraud and 'book ramping.'