Investment fraud FAQs
Investment fraud can be investigated by the Serious Fraud Office (SFO) or the Financial Conduct Authority (FCA). We understand their systems and their mindset, so we know how to challenge their investigations where appropriate.
What does investment fraud mean?
Generally, investment fraud is defined as; a deceit or deception designed to persuade someone to invest in a fraudulent product or investment. We have seen that many investment fraud schemes include promises such as high yields and quick returns. They can also include professionals, such as financial advisors, solicitors or accountants to help with promoting the scheme. This is to give the fraud a cloak of legitimacy. Sometimes, it is possible for some of those who are involved in the investments not to know what they are promoting is fraudulent.
How does investment fraud work?
Investment fraud works by a fraudster or a group of fraudsters persuading someone to invest in something that is fraudulent or does not exist. Typically, they will promise high interest yields and a quick return. Many types of investment fraud will have offshore investments or funds and make it difficult for their victims to check on their investments. By its nature, investment fraud changes and evolves, but generally, they will usually make the same promises.
What is the sentencing for investment fraud?
If found guilty of this crime in a court of law, the sentencing for investment fraud depends on several factors, which include:
- Culpability
- The level of actual or potential harm caused to the victim
- The type of investment crime
- The impact of the crime on the victim and how it has affected their lives
There will be other factors considered, such as any previous convictions or mental health issues. Typically for fraud, those that are found guilty may well be given a custodial sentence and can expect to face anything from six months to ten years in prison. Other penalties include:
- Disqualification from being a company director
- A substantial fine
- Confiscation order
- Community orders – if a custodial sentence is not given
Generally, if a guilty plea is submitted then this will involve a reduction in sentence.
For expert legal advice and representation for investment fraud, contact our expert investment fraud lawyers today.