The crux of most investment frauds is the fraudster’s wholesale abuse of trust and reliance. Victim investors will often place their trust and reliance in the fraudster, for example, due to his convincing representations of having highly regarded professional competence, or due to his representations of having sincere cultural or faith affinities with the victims. Because the fraudster carefully cultivates the trust relationship, victims will often neglect to carry out an appropriate level of due diligence on the fraudster prior to transferring their funds into his control. Furthermore, sophisticated fraudsters often employ the assistance of third party individuals and entities in order to re-convey and “substantiate” the fraudsters’ false representations, and to launder and conceal the victims’ assets.
We handle numerous investment fraud claims.
For example, in one of our partners many successful cases they were able to determine that once the primary fraudster obtained possession of the victims’ funds, he transferred the funds to concealed accounts in the names of shell companies in England, Hong Kong, Switzerland, the Caribbean, and the United States. Through hard-fought tracing orders, they discovered that the primary fraudster had wrongfully diverted the victims’ funds in order to purchase a palatial residence in Southern California, through the agency of yet another offshore corporation. Subsequently, they arranged for lawyers from our legal network in California to obtain a lis pendens order against the property in order to prevent its sale. The fight for the recovery of our client’s investment funds was successful.