Financial Fraud: Common Investment Frauds

<h2>Promissory Notes<&sol;h2>&NewLine;<p>Promissory notes are a form of debt that companies sometimes use to raise money&period; They typically involve investors loaning money to a company in exchange for a fixed amount of periodic income&period; Although promissory notes can be appropriate investments for many individuals&comma; some fraudsters use promissory notes to defraud investors&comma; especially the elderly&period;<&sol;p>&NewLine;<div class&equals;"mh-content-ad"><script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js&quest;client&equals;ca-pub-9162800720558968"&NewLine; crossorigin&equals;"anonymous"><&sol;script>&NewLine;<ins class&equals;"adsbygoogle"&NewLine; style&equals;"display&colon;block&semi; text-align&colon;center&semi;"&NewLine; data-ad-layout&equals;"in-article"&NewLine; data-ad-format&equals;"fluid"&NewLine; data-ad-client&equals;"ca-pub-9162800720558968"&NewLine; data-ad-slot&equals;"1081854981"><&sol;ins>&NewLine;<script>&NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi;&NewLine;<&sol;script><&sol;div>&NewLine;<p>For tips on how to avoid promissory note scams&comma; read <a href&equals;"https&colon;&sol;&sol;www&period;sec&period;gov&sol;investor&sol;pubs&sol;promise&period;htm">Broken Promises&colon; Promissory Note Fraud<&sol;a>&period; For more information&comma; the <a class&equals;"ext extlink" href&equals;"http&colon;&sol;&sol;www&period;finra&period;org">Financial Industry Regulatory Authority &lpar;FINRA&rpar;<&sol;a> website has an alert on <a class&equals;"ext extlink" href&equals;"https&colon;&sol;&sol;www&period;finra&period;org&sol;InvestorInformation&sol;InvestorAlerts&sol;PromissoryNotes&sol;PromissoryNotesCanBeLessThanPromised&sol;index&period;htm">Promissory Notes Can Be Less Than Promised<&sol;a>&period;<&sol;p>&NewLine;<h2>Pump and Dump Schemes<&sol;h2>&NewLine;<p>&&num;8220&semi;Pump and dump&&num;8221&semi; schemes have two parts&period; In the first&comma; promoters try to boost the price of a stock with false or misleading statements about the company&period; Once the stock price has been pumped up&comma; fraudsters move on to the second part&comma; where they seek to profit by selling their own holdings of the stock&comma; dumping shares into the market&period;<&sol;p>&NewLine;<p>These schemes often occur on the Internet where it is common to see messages urging readers to buy a stock quickly&period; Often&comma; the promoters will claim to have &&num;8220&semi;inside&&num;8221&semi; information about a development that will be positive for the stock&period; After these fraudsters dump their shares and stop hyping the stock&comma; the price typically falls&comma; and investors lose their money&period;<&sol;p>&NewLine;<div class&equals;"pagination clear clearfix"> <a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;financial-fraud-common-investment-frauds&sol;amp&sol;" class&equals;"post-page-numbers"><span class&equals;"pagelink">1<&sol;span><&sol;a> <a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;financial-fraud-common-investment-frauds&sol;amp&sol;2&sol;amp&sol;" class&equals;"post-page-numbers"><span class&equals;"pagelink">2<&sol;span><&sol;a> <a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;financial-fraud-common-investment-frauds&sol;amp&sol;3&sol;amp&sol;" class&equals;"post-page-numbers"><span class&equals;"pagelink">3<&sol;span><&sol;a> <a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;financial-fraud-common-investment-frauds&sol;amp&sol;4&sol;amp&sol;" class&equals;"post-page-numbers"><span class&equals;"pagelink">4<&sol;span><&sol;a> <a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;financial-fraud-common-investment-frauds&sol;amp&sol;5&sol;amp&sol;" class&equals;"post-page-numbers"><span class&equals;"pagelink">5<&sol;span><&sol;a> <a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;financial-fraud-common-investment-frauds&sol;amp&sol;6&sol;amp&sol;" class&equals;"post-page-numbers"><span class&equals;"pagelink">6<&sol;span><&sol;a> <a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;financial-fraud-common-investment-frauds&sol;amp&sol;7&sol;amp&sol;" class&equals;"post-page-numbers"><span class&equals;"pagelink">7<&sol;span><&sol;a> <span class&equals;"post-page-numbers current" aria-current&equals;"page"><span class&equals;"pagelink">8<&sol;span><&sol;span><&sol;div>

Investment Fraud