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Stock Market Scams - Get Your Money Back!
If you've been scammed, contact us and our team of experts will work to recover your money!
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Get Money Back!
Ensure a free consultation. If your case is urgent, please call +1 (951) 368 7700.
Stock Trading Scams: Recover Lost Funds
We all dream of being the next Warren Buffett. Who wouldn't want to be one of the richest people in the world? We all want to make the right investment every time, but that's almost impossible to achieve. Scammers prey on those looking to make quick money, seeking to lure us with shady investment opportunities that have no real basis in reality. If you suspect you've suffered a loss due to a fraudulent stock trading scam, contact us immediately, and we'll work to recover your money.
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How Does This Work?
We strive to assist clients who have been victims of stock trading scams. Our recovery experts will work to recover your losses and correct the wrongs you have experienced at the hands of fraudulent individuals and companies. Additionally, our information guides will help you avoid such scams in the future, preparing you for potential future attacks.
Our professionals prioritize helping clients recover funds after becoming victims of stock market scams. We aim to raise awareness about various types of stock fraud and how best to protect yourself. With knowledge, you can shield your stock investments from fraud and scams.
How Does the Stock Market Work?
If you've suffered a loss due to a stock market scam or fraud, you have options. Fortunately, with the stock market being so regulated and scrutinized, you have avenues to recover your funds. However, the process is exhaustive and challenging, leading many to feel frustrated and decide not to pursue monetary recovery.
We specialize in recovering funds lost to fraudulent activities and stock market scams. We have extensive experience working with regulatory bodies and pursuing legal action against bad actors in the stock market field. Our representatives conduct a thorough and detailed analysis of what happened to determine the best course of action to recover your money. We then assign a caseworker who will focus on your case throughout the entire process. We have countless positive reviews and a very high positive success rate in this field. What is SEC Rule 10b-5?
SEC Rule 10b-5 simply states that it is illegal to commit fraud or deceit on anyone. This involves the practices listed above but also includes misrepresentation or even omitted information. (See https://www.law.cornell.edu/cfr/text/17/240.10b-5)
Is It Illegal to Manipulate Stocks?
When it comes to regulation and legal aspects of the stock market, few terms are as broad in their definition and meaning as manipulation. Stocks are always manipulated by entities big and small in (mostly) legal and ethical ways — this is the nature of the stock market. But certain forms of stock manipulation are illegal, such as front-running and naked short selling. Naked short selling is when you short a stock without borrowing the underlying stock. A recent example was the short interest percentage on GameStop by hedge funds in early 2021 — hedge funds shorted 130% of the available shares of GameStop. In other words, hedge funds shorted 30% more stocks than were available.
Is the Stock Market a Pyramid Scheme?
No, the stock market is not a pyramid scheme. Just like those who operate Ponzi schemes, some fraudsters also run pyramid schemes — but the stock market itself is not a pyramid scheme.
How Can We Help You Recover Your Money?
Please review our website and fill out the contact request form. An agent will contact you and work with you throughout the process.
Review Your Case
Based on our experience, we conduct an initial check to assess whether the case could lead to a substantial recovery.
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Confront Entities
Systematically confront the entities involved in the illegal transfer of your wealth.
Collect Evidence
Gather all the necessary information and documentation required to successfully handle your case.
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Recover Money
We take pride in our track record and assure you that we will do everything in our power to recover your funds.
The stock market is a form of centralized trading where investors can buy and sell ownership (stocks) of various companies. Most stock markets worldwide are highly regulated and involve legitimate, nationally registered, and regulated brokers to facilitate the transfer of stocks from sellers to buyers.
Examples of regulated exchanges are the New York Stock Exchange (NYSE) and NASDAQ in the United States. Our ability to access the stock market has never been easier, and the barriers to entry decrease every year.
But this easy access is not without risks. In the world of investing and stocks, we are all vulnerable to different types of investment scams, so it's our responsibility to do our due diligence to protect ourselves and our money from becoming victims of stock fraud and scams. Is the Stock Market Rigged?
Examples of regulated exchanges are the New York Stock Exchange (NYSE) and NASDAQ in the United States. Our ability to access the stock market has never been easier, and the barriers to entry decrease every year.
But this easy access is not without risks. In the world of investing and stocks, we are all vulnerable to different types of investment scams, so it's our responsibility to do our due diligence to protect ourselves and our money from becoming victims of stock fraud and scams. Is the Stock Market Rigged?
One of the biggest questions, and beliefs, about the stock market is whether it is rigged. Is it? The stock markets in the United States are regulated by various governmental and non-governmental entities, such as the SEC (Securities and Exchange Commission) and FINRA (Financial Industry Regulatory Authority). Both the SEC and FINRA have overlapping legal responsibilities to oversee the exchanges and the various brokers that facilitate stock buying and selling. But that doesn't mean we're safe from all fraud and scams.
Companies, both current and past, have intentionally deceived individual investors and/or engaged in illegal accounting and business practices, such as ENRON and Valeant Pharmaceuticals. Some fraudsters create “too good to be true” advertisements that lead to Ponzi schemes — the worst of these historically being Bernie Madoff.
Even online stock brokers, who are regulated, do not always fulfill their fiduciary duty to their clients — a recent example being Robinhood during the GameStop crash in early 2022. While the stock market poses obvious risks and there are many who wish to take advantage of you, the vast majority of brokers and exchanges operate in a legal, ethical, and legitimate manner.
Companies, both current and past, have intentionally deceived individual investors and/or engaged in illegal accounting and business practices, such as ENRON and Valeant Pharmaceuticals. Some fraudsters create “too good to be true” advertisements that lead to Ponzi schemes — the worst of these historically being Bernie Madoff.
Even online stock brokers, who are regulated, do not always fulfill their fiduciary duty to their clients — a recent example being Robinhood during the GameStop crash in early 2022. While the stock market poses obvious risks and there are many who wish to take advantage of you, the vast majority of brokers and exchanges operate in a legal, ethical, and legitimate manner.
Key Points
1. Avoid individuals or entities approaching you with terms like “investment opportunity,” “guaranteed returns,” or anything that sounds too good to be true.
2. Avoid high-pressure sales tactics and advertisements — if you didn't seek out the company yourself, it's best to avoid them.
3. Do your own due diligence — trust yourself and avoid taking advice from others about what to buy or sell. Talk to a registered financial advisor.
4. Learn the basics — study Dow Theory 101 and understand what a bear and bull market are. Learn about conservative and traditional investing. Learn how to invest in leaders and proven successful stocks, such as those in traditional blue-chip stocks.
Types of Securities Fraud?
1. Avoid individuals or entities approaching you with terms like “investment opportunity,” “guaranteed returns,” or anything that sounds too good to be true.
2. Avoid high-pressure sales tactics and advertisements — if you didn't seek out the company yourself, it's best to avoid them.
3. Do your own due diligence — trust yourself and avoid taking advice from others about what to buy or sell. Talk to a registered financial advisor.
4. Learn the basics — study Dow Theory 101 and understand what a bear and bull market are. Learn about conservative and traditional investing. Learn how to invest in leaders and proven successful stocks, such as those in traditional blue-chip stocks.
Ponzi Schemes
Perhaps the most famous version of a stock fraud scheme in history is the Ponzi scheme. A Ponzi scheme involves using the deposits of new investors to pay investment returns to older investors. When a new investor joins the system, usually at the recommendation of another investor, they unwittingly become part of the Ponzi scheme. Ponzi schemes are so successful because people believe in their legitimacy and return history. Ponzi schemes can last for years, even decades.
Take Bernie Madoff, for example — his Ponzi scheme and fraud empire lasted over 20 years. He was so successful in this fraud that his company even became one of the major market makers in the stock market, and he was also the former chairman of NASDAQ! A Ponzi scheme will eventually collapse because the new investor's money is never enough to continue paying off the older investors. Some key words or phrases for Ponzi schemes are “guaranteed income,” “offshore investments,” “small private hedge funds,” “secret invitation-only funds,” or any other form of “too good to be true” sales pitch.
Pump and Dump
Pump and Dump (sometimes called P&D) scams are one of the most classic and persistent forms of stock fraud that exist. What makes pump and dump scams hard to detect is that they can often be conducted in a legitimate manner. A pump and dump is essentially an event where you target a stock to buy. This stock is sometimes called a “long,” indicating a high rate of return on investment. You may also hear how this stock is poised to become the next leader in its sector/industry or how it is the next Apple or Amazon.
The stocks used for pump and dump are usually publicly traded and listed on regulated exchanges like NASDAQ and bought through regulated stock brokers. The stock price almost always lies between $1.00 and $10.00; the pump and dump work in a simple manner. The fraudsters buy the cheap stock early and then start promoting it, stirring up support and enthusiasm. As new investors buy in, the price begins to soar and accelerate — it is at this point that the scheme initiators sell off and exit their positions with a substantial profit at your expense and at the expense of everyone else who bought in too late.
Penny Stock Scams
Like pump and dump scams, penny stock scams are also one of the oldest and most well-known forms of stock fraud. Penny scams are often closely related to pump and dump schemes that exploit penny stocks. Penny stock scams are frequently promoted as a way to invest in new companies through their stock at extremely low prices, with promises of huge returns in the future — the definition of a get-rich-quick scheme. The term “penny stock” doesn't necessarily mean the stock is worth pennies — today, it usually refers to very low-value stocks.
However, modern penny stock scams are increasingly using stocks that are not available on major regulated exchanges like the New York Stock Exchange. Instead, these penny stocks can be found on “pink sheets” or in over-the-counter markets (OTC). Regulated stock brokers do not always offer OTC securities, as the securities themselves must be traded either directly between the companies selling the stock to you or through other decentralized brokers/exchanges.
Stockbroker Fraud
Fortunately, stockbroker fraud is a form of fraud that has decreased as the stock market has become more regulated. However, that doesn't mean it doesn't happen. Gone are the days when stockbrokers would take old physical paper securities or deposit cash and then run off with it. Today, stockbrokers looking to wrong clients now have to resort to more shadowy methods.
One of the most common (and sometimes legal) forms of stockbroker fraud is known as “front-running.” Let's say you call your brokerage firm and want to buy 100 shares of XYZ stock. Your broker knows this might move the market and instead places an order for themselves before executing your order. The broker is essentially front-running the market before your order is fulfilled and allowing your order to increase the value of their earlier position.
The primary problem with front-running is that it is almost impossible to detect. With the amount of high-frequency trading (HFT) that occurs per second, front-running is a type of fraud that can only be identified by diligent and proactive regulatory bodies. Stockbrokers may also engage in other practices that are not necessarily fraudulent but unethical. Some types of behavior encourage new investors to engage in high-frequency day trading, undisclosed dividend distribution, and unclear rules or fees associated with short selling.
Boiler Room Scams
If you've seen the movie "The Wolf of Wall Street," then you know what a boiler room is. Jordan Belfort (The Wolf of Wall Street) employed hundreds of “brokers” who called potential investors to buy shares in individual companies — usually companies that were overhyped but cheap. The “brokers” used high-energy sales tactics, making potential investors fear they would miss out on the opportunity of a lifetime (FOMO = Fear Of Missing Out).
While the days of call center-style boiler rooms like The Wolf of Wall Street are gone, that doesn't mean the concept has disappeared. It has evolved. We now have subreddits (on the website Reddit), private/public forums and message boards, emails, text alerts, fraudulent websites, fake webinars, Twitter, Facebook, and auto-social media generators on StockTwits (the Twitter version for stocks) instead of boiler room traders. Modern boiler room operations are now more widespread than their old counterparts, and they continue to grow and become more sophisticated.
Signal Providers
Signal providers are companies or individuals who want you to subscribe to their frequent notifications, which will give you the stocks to buy or short-sell, what the stock price entry is, where to take profit, and where to set stop losses or trailing stops. While this service may sound great and appear to be a good deal, signal providers are after only one thing: your subscription, making it another potential stock scam.
Almost all signal providers are scammers and fraudsters operating in a more legitimate manner to peddle their services. You may also encounter signal providers who offer their services for free. Signal providers offering free services are almost always involved in pump and dump schemes. They entice new traders and investors to think they are gaining a great advantage by getting free information — but what you're really doing is just acting as a liquidity tool to push the stock price higher before the provider dumps it with the intent to sell.
Can You Get Your Money Back After a Stock Scam?
Perhaps the most famous version of a stock fraud scheme in history is the Ponzi scheme. A Ponzi scheme involves using the deposits of new investors to pay investment returns to older investors. When a new investor joins the system, usually at the recommendation of another investor, they unwittingly become part of the Ponzi scheme. Ponzi schemes are so successful because people believe in their legitimacy and return history. Ponzi schemes can last for years, even decades.
Take Bernie Madoff, for example — his Ponzi scheme and fraud empire lasted over 20 years. He was so successful in this fraud that his company even became one of the major market makers in the stock market, and he was also the former chairman of NASDAQ! A Ponzi scheme will eventually collapse because the new investor's money is never enough to continue paying off the older investors. Some key words or phrases for Ponzi schemes are “guaranteed income,” “offshore investments,” “small private hedge funds,” “secret invitation-only funds,” or any other form of “too good to be true” sales pitch.
Pump and Dump
Pump and Dump (sometimes called P&D) scams are one of the most classic and persistent forms of stock fraud that exist. What makes pump and dump scams hard to detect is that they can often be conducted in a legitimate manner. A pump and dump is essentially an event where you target a stock to buy. This stock is sometimes called a “long,” indicating a high rate of return on investment. You may also hear how this stock is poised to become the next leader in its sector/industry or how it is the next Apple or Amazon.
The stocks used for pump and dump are usually publicly traded and listed on regulated exchanges like NASDAQ and bought through regulated stock brokers. The stock price almost always lies between $1.00 and $10.00; the pump and dump work in a simple manner. The fraudsters buy the cheap stock early and then start promoting it, stirring up support and enthusiasm. As new investors buy in, the price begins to soar and accelerate — it is at this point that the scheme initiators sell off and exit their positions with a substantial profit at your expense and at the expense of everyone else who bought in too late.
Penny Stock Scams
Like pump and dump scams, penny stock scams are also one of the oldest and most well-known forms of stock fraud. Penny scams are often closely related to pump and dump schemes that exploit penny stocks. Penny stock scams are frequently promoted as a way to invest in new companies through their stock at extremely low prices, with promises of huge returns in the future — the definition of a get-rich-quick scheme. The term “penny stock” doesn't necessarily mean the stock is worth pennies — today, it usually refers to very low-value stocks.
However, modern penny stock scams are increasingly using stocks that are not available on major regulated exchanges like the New York Stock Exchange. Instead, these penny stocks can be found on “pink sheets” or in over-the-counter markets (OTC). Regulated stock brokers do not always offer OTC securities, as the securities themselves must be traded either directly between the companies selling the stock to you or through other decentralized brokers/exchanges.
Stockbroker Fraud
Fortunately, stockbroker fraud is a form of fraud that has decreased as the stock market has become more regulated. However, that doesn't mean it doesn't happen. Gone are the days when stockbrokers would take old physical paper securities or deposit cash and then run off with it. Today, stockbrokers looking to wrong clients now have to resort to more shadowy methods.
One of the most common (and sometimes legal) forms of stockbroker fraud is known as “front-running.” Let's say you call your brokerage firm and want to buy 100 shares of XYZ stock. Your broker knows this might move the market and instead places an order for themselves before executing your order. The broker is essentially front-running the market before your order is fulfilled and allowing your order to increase the value of their earlier position.
The primary problem with front-running is that it is almost impossible to detect. With the amount of high-frequency trading (HFT) that occurs per second, front-running is a type of fraud that can only be identified by diligent and proactive regulatory bodies. Stockbrokers may also engage in other practices that are not necessarily fraudulent but unethical. Some types of behavior encourage new investors to engage in high-frequency day trading, undisclosed dividend distribution, and unclear rules or fees associated with short selling.
Boiler Room Scams
If you've seen the movie "The Wolf of Wall Street," then you know what a boiler room is. Jordan Belfort (The Wolf of Wall Street) employed hundreds of “brokers” who called potential investors to buy shares in individual companies — usually companies that were overhyped but cheap. The “brokers” used high-energy sales tactics, making potential investors fear they would miss out on the opportunity of a lifetime (FOMO = Fear Of Missing Out).
While the days of call center-style boiler rooms like The Wolf of Wall Street are gone, that doesn't mean the concept has disappeared. It has evolved. We now have subreddits (on the website Reddit), private/public forums and message boards, emails, text alerts, fraudulent websites, fake webinars, Twitter, Facebook, and auto-social media generators on StockTwits (the Twitter version for stocks) instead of boiler room traders. Modern boiler room operations are now more widespread than their old counterparts, and they continue to grow and become more sophisticated.
Signal Providers
Signal providers are companies or individuals who want you to subscribe to their frequent notifications, which will give you the stocks to buy or short-sell, what the stock price entry is, where to take profit, and where to set stop losses or trailing stops. While this service may sound great and appear to be a good deal, signal providers are after only one thing: your subscription, making it another potential stock scam.
Almost all signal providers are scammers and fraudsters operating in a more legitimate manner to peddle their services. You may also encounter signal providers who offer their services for free. Signal providers offering free services are almost always involved in pump and dump schemes. They entice new traders and investors to think they are gaining a great advantage by getting free information — but what you're really doing is just acting as a liquidity tool to push the stock price higher before the provider dumps it with the intent to sell.
We specialize in recovering funds lost to fraudulent activities and stock market scams. We have extensive experience working with regulatory bodies and pursuing legal action against bad actors in the stock market field. Our representatives conduct a thorough and detailed analysis of what happened to determine the best course of action to recover your money. We then assign a caseworker who will focus on your case throughout the entire process. We have countless positive reviews and a very high positive success rate in this field. What is SEC Rule 10b-5?
Partnered Regulatory Agencies
Office Locations
Commodity Futures Trading Commission (CFTC)
Financial Industry Regulatory Authority (FINRA)
Consumer Financial Protection Bureau (CFPB)
Federal Financial Supervisory Authority (BaFin)
Autorité des marchés financiers (AMF)
Swiss Financial Regulator (FINMA)
Financial Conduct Authority (FCA)
Hong Kong Monetary Authority (HKMA)
Monetary Authority of Singapore (MAS)
Financial Futures Association of Japan (FFAJ)
Financial Industry Regulatory Authority (FINRA)
Consumer Financial Protection Bureau (CFPB)
Federal Financial Supervisory Authority (BaFin)
Autorité des marchés financiers (AMF)
Swiss Financial Regulator (FINMA)
Financial Conduct Authority (FCA)
Hong Kong Monetary Authority (HKMA)
Monetary Authority of Singapore (MAS)
Financial Futures Association of Japan (FFAJ)
Office Location in California, USA:
900 Wilshire Blvd, Los Angeles, CA 90017, USA Office Location in Bern, Switzerland:
Schanzenstrasse 4a, 3008 Bern, Switzerland WCXP+7X Office Location in Hong Kong:
8 Financial Street,Central,Hong Kong Office Location in London, UK:
30St May,Axe,London EC3A 8BF
900 Wilshire Blvd, Los Angeles, CA 90017, USA Office Location in Bern, Switzerland:
Schanzenstrasse 4a, 3008 Bern, Switzerland WCXP+7X Office Location in Hong Kong:
8 Financial Street,Central,Hong Kong Office Location in London, UK:
30St May,Axe,London EC3A 8BF