Offers to Recoup a Lost Investment: Are They Legitimate?
If you have lost money in a securities investment, obviously you would be happy to recoup some of those funds. Many companies that offer assistance with recovering lost capital, however, are likely fraudulent. A company may sound credible, have authentic looking documents, and a fancy website, but if the deal sounds too good to be true, it probably is a scam.
Tips for Investors
- Be a Skeptic. Assume that any “recovery” company that reaches out to you is a fake until you can independently verify it is a legitimate company – especially if it claims to be registered with FINRA. Look it up on FINRA’s BrokerCheck site and use the contact information on the BrokerCheck report to reach out to the firm.
- Google. Perform an internet search of the company and any individuals who contact you. Look for negative “reviews” or any other indications that others were victimized by the company or that regulatory or law enforcement agencies are investigating the company.
- Don’t throw good money after bad. Common scams include offers to swap your investment for another investment or to buy your investment at a premium after you pay an “administrative” fee.
- Don’t send money by wire. Once the funds are wired, it can go anywhere in the world and you can’t get it back. Legitimate companies will take a check.
All investments carry some level of risk and sometimes an investment loss is not actionable. If, however, you believe your brokerage firm or stock broker acted improperly or violated securities laws, you should contact a reputable securities attorney to discuss viable options for the recovery of your losses.
If you have lost $100,000 or more due to the actions of a brokerage firm or stockbroker, contain McCabe Rabin for a free and confidential consultation to see if you may have a FINRA arbitration claim.