Investment fraud is old just like its name. Dishonest people do try to cheat and swindle away people’s money. Savvy as well as inexperienced investors are taken advantage of the investment companies. Investors are persuaded to investing because these programs are recommended by their investment advisors or by financial institutions. However, these entities fail to provide protection to the investments provided by the customers. Investment fraud consists of a wide range of investment products and programs that include investors; novice as well as sophisticated. These are fraudulent schemes and should be avoided by people otherwise; they will lose a lot of money.
Many investors have lost their money while investing in GPB Capital. It is a private investment entity and its main model includes acquiring assets that produce income. The notable among them are trash hauling companies as well as auto dealerships. The company is being investigated by law enforcement and regulators as a Ponzi scheme. It is facing several investigations from national and state securities regulators. The company’s New York offices were raided by FBI or Federal Bureau of Investigation. Several brokerage firms are investigated that have sold this high-risk and illiquid investment to its customers.
White-collar crime comprises of a large number of crimes. These crimes are the crimes that are committed via deception and they are committed for financial gain. The common kinds of white-collar crimes include money laundering, embezzlement, fraud, and tax evasion. Most of the scams and frauds that constitute the white-collar crimes are Ponzi scheme and security fraud including insider trading. Tax evasion and insurance fraud come under the white-collar crime category. Securities frauds are of different kinds but the most common kind is insider trading. Insider trading is when an employee of a company exchange price sensitive information to the outsiders.
Tips to avoid investing in fraud investments
Investment fraud includes the illegal or purported sale of financial instruments. These schemes are sold as no-risk or very low-risk investments, consistent returns, guaranteed returns, unregistered securities, and complex strategies. There are a few tips that can help you avoid fraud investments into GPB Capital. Firstly, you should not invest in anything about which you are not sure. Do your homework properly. Respond to investment offers cautiously, particularly via unsolicited e-mails. Inquire about the terms and conditions of the investments. Deal with companies and individuals outside your country very cautiously. Follow these tips and avoid investment fraud.
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