Securities Litigation Attorneys Representing Clients Nationwide
A promissory note is a promise from one entity to another to pay a certain amount of money in the future. Organizations use promissory notes to raise funds from investors which are then paid later with interest. However, there are many illegal promissory notes where the person issuing the note has no intention of ever repaying the investors buying the security. This is what is known as promissory notes fraud and is common in the United States. If you have been a victim of promissory notes fraud, Weltz Law can help you recover your funds.
Promissory Notes Fraud
Promissory note fraud involves fraudsters issuing promissory notes that they have no intention of ever honoring. In most cases, promissory notes fraud is targeted at insurance-operated investment funds given that most of the professionals in that field may not be fully conversant with promissory notes and other forms of securities. Increasingly as well, there is a link between promissory notes fraud and Ponzi schemes. Regardless of the approach that the fraudsters use, the end result is always the same. Fortunes lost while victims are left holding useless pieces of paper.
Proving Promissory Notes Fraud
Relative to other securities-related fraud, promissory notes fraud is not very difficult to prove. Most of the people who engage in this kind of fraud will often entice their victims with a very high rate of return (usually many times in excess of the market average). Fraudsters may sometimes even guarantee a certain return thus enticing buyers with the low risk their securities offer. Once their victims buy into the fraud, the criminals will often siphon the money into their own accounts and depending on the nature of the fraud, other expenses related to marketing the illegal securities.
Given the fact that promissory notes are often not backed by any kind of collateral, it makes them an easy option for fraudsters looking to make a quick buck.
Damages for Promissory Notes Fraud
Recovering your money after a promissory notes fraud is hard if you don’t have a skilled attorney representing you. In most of these cases, the fraudsters will often bankrupt their companies to ensure that any promissory notes that they issued are worthless. With a skilled securities fraud lawyer by your side, there is a chance that you can recover some or all of the money lost.