Dallas Investment Fraud Lawyers

More than 30 Years of Federal Criminal Defense Experience

Securities fraud, also known as investment fraud, often involves the promise of a high return rate on an investment with little risk. On the federal level, the Securities and Exchange Commission (SEC) protects investors through the federal Securities Act. In addition, the SSB, or Texas State Securities Board, also regulates the securities industry in our state.

The SEC and SSB are concerned with uncovering acts of deception in regards to investments and stocks. Some of the more common illegal investment activities include:

  • Ponzi and pyramid schemes
  • Late day trading
  • Hedge fund-related trading
  • Broker embezzlement
  • Foreign currency fraud
  • High-yield investment fraud

Ponzi & Pyramid Schemes

Two of the most common types of investment fraud are Ponzi and pyramid schemes. A Ponzi scheme is a common type of investment fraud premised on returning a high rate of return to current investors by recruiting new investors to contribute funds. The creator or creators of the Ponzi scheme need to recruit new investors to create the facade of high return rates.

Similar to a Ponzi scheme, a pyramid scheme is premised on returning a high rate of return and recruiting new members to support the high return rate. Unlike a Ponzi scheme, however, members in a pyramid scheme actively recruit new investors. The members expand significant effort to recruit new members through marketing programs. In a Ponzi scheme, members in the scheme do not recruit other investors; instead, these members believe the high rate of return is based on their investments and not recruiting other investors.

In the end, Ponzi and pyramid schemes eventually collapse when new investors cannot be recruited or when a significant number of investors try to cash out their investments. Common warning signs of these schemes include:

  • High investment returns with little risk
  • Unregistered investments
  • Consistent high return rates
  • Unlicensed brokers
  • Lack of paperwork
  • Not receiving payments
  • Difficulty cashing out one’s investment

Contact a Dallas Investment Fraud Defense Attorney

If you are involved in an investment fraud scheme, it is important to contact an experienced Dallas investment fraud attorney. At the Law Office of Patrick J. McLain, PLLC, Patrick J. McLain is an experienced stock and securities fraud lawyer who can help protect your legal rights.

Contact our firm to schedule a complimentary and confidential case evaluation today. Call our office 24 hours a day, 7 days a week at (214) 238-9392.

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