For many entrepreneurs in California, investing is an occupation. Unfortunately, even professional investors can fall for many scams perpetrated by other individuals.
When an investment fails, taking a significant toll on the value of your portfolio, you might not believe you have any legal options. However, when your losses occur due to the fraudulent actions of others, you may have recourse through securities or business litigation.
The top 2022 investment threats
The North American Securities Administrators Association (NASAA) recently released an alert about the investment threats expected to arise in 2022. Some examples of these threats include the following.
- Investment opportunities involving digital assets and cryptocurrency (Bitcoin, Dogecoin, etc.)
- Fraudulent schemes associated with self-directed individual retirement accounts
- Online investment opportunities or offers
- Financial offerings through social media platforms
Cryptocurrency and digital asset investments require extra caution on the part of investors. According to a securities enforcement professional, some crypto investment programs are nothing more than Ponzi schemes hidden behind a façade of respectability. He added that crypto investments generally are risky.
Securities enforcement personnel also urge investors to be cautious when considering unregistered private offerings. These opportunities are risky because they lack the same investor protections that accompany registered public offerings.
When investments provide a critical portion of your business capital, you cannot afford to take a massive loss. It’s wise to increase your knowledge of business litigation and investment fraud before putting money into potentially unsound opportunities. Learning more can also help you find a legal solution for any financial harm you suffer. Obtaining experienced legal guidance can be valuable.