Types of Fraud-Based Offenses
Most, though not all, white collar crimes involve some sort of fraudulent conduct. Although crimes of this nature usually only have a financial component, they still come with serious penalties, including fines and jail time, so if you have been accused of committing a fraud-related offense, it is important to begin working on your defense with a white collar crime lawyer who has the resources and experience to aggressively defend your rights and interests.
Of the many types of fraud-related offenses, investment fraud is perhaps the most commonly charged. This is a complex area of the law, as there are a number of different types of fraud that a person can be charged with, including the following crimes.
Affinity fraud involves the targeting of certain groups, such as the elderly or certain ethnic communities, and also typically concerns Ponzi schemes or pyramid schemes, where new investor funds are used to pay earlier investors, which in turn, creates the illusion of a successful investment.
Advance Fee Fraud
Advance fee fraud, which requires investors to pay a fee in advance of receiving any stock, proceeds, or funds. Many advance fee schemes involve the sale of services or products, as well as the offering of investments, such as lottery winnings and found money. Unfortunately, many legitimate brokers are accused of advance fee fraud by disgruntled investors.
Binary Options Fraud
Binary options are a type of options contract where the payout that an investor receives depends on whether the price of a certain asset will rise above or fall below a certain amount. Once a binary option is purchased, the holder is not required to make any further decisions regarding the exercise of that option because binary options exercise automatically. Furthermore, these kinds of options don’t give their holders a choice when it comes to buying or selling the asset. Instead, when the binary option expires, the holder receives a predetermined amount, or in some cases, nothing at all. When sellers are accused of refusing to credit customer accounts, to reimburse funds, of committing identity theft, or of manipulating software to generate losing trades, they can be charged with binary options fraud.
Commodity Pool Fraud
Commodity pool operators are firms or individuals who raise funds and then pool those funds together to trade on commodity futures and options. While this type of conduct is lawful, a person could run afoul of the law if he or she is an unregistered operator, makes false claims about low risk or high profits, or misuses investor funds. Whether a firm’s conduct goes so far as to constitute fraud requires an extremely fact specific analysis, making it especially important for those who have been accused of investment fraud to speak with an attorney as soon as possible.
Contact Jeffrey S. Weiner, P.A. Today for a Free Case Evaluation
If you are being investigated for or have been charged with fraud, please call 305-670-9919 to speak with dedicated Miami white collar crime attorney Jeffrey S. Weiner, P.A. today.