FIU Investor Advocacy Clinic: top ten signs that an investment may be a scam

MIAMI – The FIU College of Law’s newly established Investor Advocacy Clinic, which provides no-fee representation to qualifying individuals who have suffered investment losses resulting from stockbroker or investment advisor misconduct, offers the top 10 signs that an offer may be a scam.

1. Cold Call:  Did this ‘great opportunity’ come to your attention from someone who called you out of the blue and you do not know them or barely know them?
2. Too Good to Be True:  Does the ‘opportunity’ promise extraordinary returns and profit for a small investment?
3.  “I Guarantee You Can’t Lose”:  As in life, there are no guarantees in any investment. 
4. Hard Sell:  Is the salesperson pushing you hard to make a purchase?  Did they tell you that their own parents and their own money are invested in the same ‘opportunity’?
5. Urgency:  Is this ‘opportunity’ only available at this price to a select few people or for just a short time?
6. Join The Crowd:  Does the salesperson tell you that seemingly everyone but you has already invested?  Does the salesperson tell you that many others from your church or other group have already invested?
7. Inside Information: Does the salesperson ‘know’ something about this investment ‘opportunity’ that nobody else does?  He or she probably does, but it’s not what you think…
8. Doing You a Favor:  Does the salesperson agree to give you, only you, a discounted commission if you ‘buy today’?
9. Very Exclusive:  Does the salesperson tell you that the other investors include those who are ‘connected’ or famous but that today is your lucky day because the salesperson can get you in?  By the way, this is what Bernie Madoff did in his $50 billion ponzi scheme.
10.  “Opportunity” Ripped From the Headlines:  Is the opportunity related to hot topics in the news?  Oil clean up technology?  A ‘green’ company investment?

If you feel you may be a victim of broker misconduct, call the Investor Advocacy Clinic at 305-348-7541 for a free evaluation of your claims.

 Media Contact:  Jean-Paul Renaud  at 305-348-2716.