No Recovery, No Fee

424-835-5733 | 310-525-3516

You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Does it seem like some investment scammers get off lightly?

Although this is not a commentary injecting personal views into sentencing outcomes regarding wrongdoers who author mass investment scams preying upon justifiably relying consumers, it is an underscoring of the reality that in some instances the judgment is simply not commensurate with the fleecing that occurred.

Candidly, how many scam artists who engineer Ponzi schemes and other investment frauds resulting in the loss of many millions of dollars for innocent investors ever experience a day behind prison bars?

Not many, to be sure, which is a notable contrast to the outcomes that routinely await legions of individuals who are routinely locked up for crimes like shoplifting, possession of a token amount of drugs, repeat traffic violations and any number of misdemeanor criminal charges.

A recent news article reports the outcome in one recent case involving an ex-director of a California investment firm.

Among other things, that company executive piled investors' money into select companies without analysis of whether doing so was appropriate or not. In return, he was thanked by those firms to the tune of nearly $2 million in handouts.

Additionally, he put clients into unsuitable private investments. Moreover, he defrauded consumers through falsely portraying himself as a certified public accountant. Further still, as noted in the above-cited report, he siphoned a stunning $33 million to a company "he was heavily involved with and knew was in poor financial condition."

How much prison time did he receive for those egregious and multiple offenses?

Reportedly, no time at all, with no reference even being made to a criminal prosecution.

The sole material penalty meted out against the adviser by the SEC in a civil action was reportedly this: a future ban on working in the investment industry.

Arguably, that is an insufficient deterrent against financial wrongdoing on a mass scale.

And such an outcome might reasonably suggest to like-minded advisers that scamming innocent investors could make for a viable business model, given the scant downside associated with getting caught that is so often seen.

Duped members of the public who have justifiably invested their hard-earned income with advisers holding themselves out as true professionals do not have to passively and helplessly suffer their broker's wrongdoing.

There are remedies against securities fraud, and a proven business law attorney who routinely advocates on behalf of defrauded investors can invoke them and pursue best-case strategies for making clients financially whole.

No Comments

Leave a comment
Comment Information

Our Office Location

The Law Offices of Marc I. Zussman
433 N. Camden Drive
Suite 730 
Beverly Hills, CA 90210       
Map & Directions

Local: 424-835-5733
Local: 310-525-3516
Toll Free: 866-451-2517
Fax: 310-525-3528