Investors are faced with increased scrutiny since the economic downturn in 2008. The financial industry has always been highly regulated and is even more regulated due to highly controversial and sometimes illegal activities that led to recent financial turmoil.
The past few years have uncovered numerous Ponzi schemes and it seems you hear of a new scam every week in the news. Investigators can be quick to accuse investment professionals of fraud and trying to make a quick dollar at the expense of others.
After allegedly defrauding investors of $3.5 million, two New Jersey men have been arrested and are facing criminal charges in federal court. Authorities claim the two men used fake screen shots to convince investors they had a computer algorithm that would help them yield great returns in the market and then compiled fake account statements to ensure investors their money was working the way it should.
The prosecutor for the case refers to the two men's nice lifestyle and large credit card bills as to where investors' money was spent. Now, authorities want to take the men's cars and one home because they think the men bought them with fraudulently obtained funds.
These charges are serious, and the consequences are severe. Accusing a person of fraud can ruin their reputation and cause emotional harm to their families before they have obtained a fair trial. Seeking out an experienced criminal defense attorney can help minimize damage to your reputation and protect your rights should you be accused of fraud.
Source: Patch.com, "Glen Rock Man Charged in Alleged Ponzi Scheme," James Kleimann, Dec. 14, 2011