Securities

What is a Security?

Generally, a security is an intangible investment which represents some type of financial value or ownership interest, such as stocks and bonds, mutual funds, etc. Something tangible, like a house, land, or car is not considered a security.

What is Fraud?

Fraud occurs when a seller intentionally uses false or misleading information to convince someone to purchase a security. If the seller omits pertinent information in order to sell you a security, that is also considered fraud.

Securities Fraud

Classic examples of securities fraud include Ponzi schemes (think Bernie Madoff) whereby the seller claims to sell an interest in property that doesn’t exist, uses new investors’ money to pay returns to other investors, and pockets the rest.

Historically, Utah has seen a disproportionate number of securities scam artists. It is wise to exercise caution when someone solicits an investment through family, church, or civic connections. The old adage “if it seems too good to be true, it probably is” holds true with securities fraud; if anyone promises returns that seem unrealistic to you, it is likely you are right.

While not every bad investment is the result of securities fraud, you should talk to an attorney if you believe someone has taken your money, or is attempting to do so, under false pretenses.

Immediate action can improve your chances of recovering your investment. Where securities fraud has occurred, there will likely be many disgruntled investors vying for limited available assets which may be recovered for compensation.

Protect Yourself & Your Business Today

If you believe you have been defrauded, take action immediately. Call us at 801-854-1200 or simply contact us online to schedule your free initial consultation.