According to a recent article in Bloomberg.com, the current financial situation presents ideal conditions for crooks and schemers in the financial industry. As quoted in the article, Joseph Borg, a 16-year securities regulator who runs the Alabama Securities Commission, “This is a perfect time to be a crook.”
The article points out numerous conditions that are now in place that are making it an advantageous time for those in the business of deceptively selling investments, pushing bogus tax shelters and/or real estate deals and operating Ponzi schemes.
According to the article, the top ten reasons that the time is ripe for scams are as follows:
10. The nation’s biggest securities regulator, The Securities and Exchange Commission, is currently suffering from significant budget constraints that have effectively limited SEC enforcement.
9. The over sixty crowd is panicked about Social Security and the stock market. These groups are desperate for returns making them significant targets for fraud and/or misleading schemes.
8. Inflation worries are picking up. This offers schemers the ability to promote certain trends to the public by playing on their fears.
7. Rising gasoline and oil prices create new opportunities for crooks to push oil and gas schemes.
6. State watchdogs are overloaded with work just as their budgets are being reduced and personnel cut back.
5. Regulation is now the “in” thing in Washington.
4. Technology is so advanced it is opening new frontiers for cheats creating the potential for huge manipulation. According to the article, regulators are so behind in this area that they may never catch up.
3. It appears that watchdog Elizabeth Warren will not be around for long and those waiting to commit mortgage fraud or switch bank products may just wait it out until she is replaced.
2. The penalty for being caught is minimal. As we have seen over the last years, companies and individuals have help fuel the meltdown with extremely aggressive accounting or questionable disclosures did not get indicted but got bailed out with taxpayer money.
1. If you get in trouble, you can always go hire a great former SEC lawyer now in private practice to get you out of trouble.
According to Pratt H. Davis, a partner with the securities litigation and arbitration firm Page Perry, “investors who believe they may have been the victim of an investment scam need to protect themselves. Injured investors are encouraged to be diligent in contacting someone who can investigate the legitimacy of questionable investments or practices in order to maximize their chance for any monetary recovery.”
Page Perry is an Atlanta-based law firm with over 125 years collective experience representing investors in securities-related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 40 occasions. Page Perry’s attorneys are actively involved in representing institutional and corporate investors in securities cases. For further information, please contact us.