PRE-IPO INVESTMENT SCAMS LAWYERS BASED IN NEW YORK

When a company goes public, their stocks are available for sale in the market for the first time. This is known as the initial public offering (IPO) and in certain cases, companies can open up the sale of these stocks to a select group of investors before the IPO. Known as the pre-IPO, only a group of private investors are able to buy the stocks at this point, although companies can also sell them on pre-IPO websites. While pre-IPO stocks can prove to be great investments, they also provide opportunities for fraudsters to take advantage of unsuspecting victims. If you suspect you have been a victim of a pre-IPO investment scam, do not hesitate to exercise your legal rights.

At Weltz Law, our attorneys are experienced in securities litigation and can assist you in recovering compensation from losses caused by pre-IPO scams. Schedule your initial consultation by calling (877) 905-7671 today.

How Do Pre-IPO Investment Scams Occur?

Pre-IPO investment scams can take place in several forms and the most common kinds include:
Selling a non-existent company or one that never went public: Fraudsters may collect money from investors, only to turn out that there was no company in the first place or that the company did not intend to go public. When this happens, victims can feel at a loss when it comes to reclaiming their money.

Selling without authorization: Investors may buy stocks from someone who never had the authorization to sell them at all. These offerings are usually stocks from real companies that have yet to go public. As a result, investors end up losing money while not holding any stocks as these fraudsters never possessed and do not have the authority to sell these stocks. The money ends up lining the fraudster’s pockets for their own use.

Selling unregistered securities: Before a company can sell a stock, they need to be registered with the Securities and Exchange Commission (SEC). The sale of unregistered securities is illegal.

Difference between IPO Fraud and Pre-IPO Investment Scams

While IPO fraud is also prevalent, this kind of fraud concerns companies who are actually going public. Misleading information and deceptive schemes can be conjured up to scam investors under IPO fraud. Whereas in pre-IPO investment scams, the existence of the company may have been entirely made up by the fraudster.

Attorneys Ready to Discuss Your Pre-IPO Investment Scam Case. We Represent Clients Nationwide.

If you suspect that you have been a victim of a pre-IPO investment scam, do not suffer in silence. You have legal recourse. Our experienced team of attorneys at Weltz Law has over 25 years of experience assisting investors in FINRA arbitration and litigation and can help you navigate complex legal proceedings.