Pennsylvania Residents: 5 Signs It’s Time To Call an Investment Fraud Attorney

Has your investment advisor made wild promises about guaranteed returns? Or maybe you think they’re just churning your account to make a quick buck. If these things sound familiar, it’s time to call an investment fraud attorney. The sad truth is that investment fraud in Pennsylvania is all too common.

This article will discuss five signs that you may be a victim of investment fraud. Keep an eye out for these warning signs, and don’t hesitate to contact an attorney if you have any doubts.

1. Possible Ponzi Schemes


Investment fraud comes in many forms, but the Ponzi scheme is one of the most common. Named after early 20th-century swindler Charles Ponzi, this fraud relies on investment money from new “clients” to pay fake returns to earlier investors. The scheme only works as long as a steady stream of new investment money is coming in – eventually, the whole house of cards collapses, and people can lose their life savings.

2. Margin Trading Risks

One of the signs that you may be a victim of investment fraud is margin trading. Margin trading involves borrowing money from a broker to purchase an investment. This can be a risky investment strategy, as it can lead to significant losses if the investment goes bad. Additionally, brokers may charge high-interest rates on the borrowed money, further increasing your losses. If you are considering margin trading or have already been doing so, it is essential to be aware of the risks involved.

3. Churning Your Account


One of the ways you can tell if you’re a victim of investment fraud in Pennsylvania is if your investment professional “churns” your account. Churning is when an investment professional engages in frequent or excessive trading in a client’s account to generate commissions. This type of activity can cost the investor more in commissions and fees than what the investment is worth.

4. Failure to Supervise

Failure to supervise is one of the most common signs that you may be a victim of investment fraud. Investment fraud can occur when someone invests without fully understanding the investment or when someone is pressured into investing without doing proper research. It can also happen when someone entrusts their investment to someone who mismanages it.

5. The Act Of Unauthorized Trading


Investment fraud can take many forms, but unauthorized trading is one of the most common signs that you may be a victim. Unauthorized trading is when someone buys or sells securities in your account without your knowledge or permission. This can often happen without you realizing it, as the person who committed the fraud may have used your login information to make the trades. If you notice any unauthorized transactions in your account, you must contact your broker immediately and report the fraud.

Investment Fraud In Pennsylvania: In Closing

If you have experienced any of these five signs, it is time to speak with an investment fraud attorney. Protecting yourself and your finances should be your top priority, and an investment fraud lawyer can help you do that. Have you dealt with any of the above situations? If so, please reach out for legal assistance today.