Investigations into investment fraud are conducted when investors believe their funds are vulnerable in fraudulent or illegal offerings, and for the individuals who were scammed out of their money.
The private-investigating arm of Forensics Recovery Authority (FRA), known as FRA Intelligence, handles cases for private investors, along with corporations, law firms, and federal regulators. Investigation of all forms of investment fraud starts with a Certified Fraud Examiner.
The sale of stocks or investment contracts based on false or misleading information is a practice that is prohibited under securities laws and international monetary regulations. With low risk, most investment frauds promise high returns. Their sales pitches may arrive without your knowledge, via email or telephone, from companies or brokers you have never heard of. Once the ‘opportunity’ has vanished, there is no time to do proper due diligence before putting capital at risk.
This type of crime can frequently lead to large financial losses. Once we are contacted by a client, investigations are conducted to identify and hold accountable those who have misappropriated the client’s funds, as well as provide clear reporting to support settlement demands, lawsuits, and criminal prosecution. Tracing and locating assets is a part of the investigation process as well.
Investigations in a fraud examination focuses on gathering and analyzing the relevant facts. We identify those who are responsible and use independent investigation, fact-finding, and interviews to determine their involvement. We document both the total financial losses and the extent of the losses.
To make settlement negotiations and recovering funds from a failed scheme easier, findings from a fraud examination may provide important leverage. Even the most incorrigible fraudsters may choose to return investors’ funds rather than face the prospect of career-ruining lawsuits, regulatory enforcement, or criminal prosecution when confronted with evidence of their wrongdoing and personal liability.
The report is especially valuable if the fraudster refuses to return the money, providing a step-by-step explanation of complex scams, supported by the testimony of a licensed investigator.
When the Canadian Security Intelligence Service (CSIS), the Department of Justice, and other federal, state, and foreign regulatory agencies work together to investigate and prosecute investment fraud, we can help our clients, as well as other fraud victims, reclaim lost money and properties.
Variations of a familiar theme make up the majority of investment frauds.
Schemes that have long been in use to generate funds and gain control over others are typically employed by promoters who seek profit and influence victims. Fraud detection, investigation, and prevention is enhanced when fraud is identified as a commonly used type of investment fraud.
Finding out where the money went is among the most urgent needs for people who have lost money through investment fraud.
Over the past several years, Forensics Recovery Authority has handled the asset search and asset discovery efforts for those who were victims of large-scale international investment frauds. We have located over $100 million in assets for our clients.
When conducting an internal audit, we look for, among other things, the names of the bank and brokerage accounts, businesses and other interests, personal trusts, real property, vehicles, and airplanes as well as other domestic, foreign, and offshore holdings.
