Investment Fraud

Warren Buffett, the American investor and world’s richest man of 2008, says that we should never use another person’s money to invest, even if we have a very good opportunity. That is because every investment comes with risks and when we invest, we must be prepared to lose. Never invest with emergency funds but with excess cash that we could afford to lose.

Warren Buffett did not tell us that we also mustn’t let other people invest our money, especially in this economic climate. Times are bad and even with a good track record in profits previously, that doesn’t mean anything because a track record is just that; it was the PAST.

I am sure we all have read about the major Investment Fraud that happened recently. I shall not name names here though, in case of legal implications, but that just shows us that trust is really too fragile these days.

I think that these days, the only person that we could trust is ourselves. Having said this, what legal recourse does an investment fraud victim have, if any? I am afraid, under such circumstances, an investment fraud victim would have to consult with a lawyer who has extensive experience in securities related crimes. Then only would the victim know of his options and the possibility of recovering his capital.

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