Broker Scam

A broker scam involves any type of broker scheme which involves defrauding by trading on the exchange markets.  Broker scams may include a broker ponzi scheme, forex scam or any other type of scheme intended to mislead one into investing into a risky or non-existent investment.  This is different from trader scam.        

Broker Ponzi Scheme

A Ponzi scheme involves an illegal investment scam. In a Ponzi broker scam, the primary scam artist is a broker who collects money from initial investors which he or she lives off or and may pay back a portion of as interest or gains.  The broker will then also collect funds from later investors which will be paid back to initial investors, as interest or gains.  Usually, there is false documentation which demonstrates earnings, so the investors continue to invest in the scheme. At some point, the Ponzi scheme will collapse when there are no more new investors to supply new money for the older investors.

Forex Scam

A “Forex” scam is a type of scam which involves trading that intends to defraud investors by convincing them to invest in a foreign market in order to obtain a high profit; ultimately, there is no chance at a high profit return and usually there is an exorbitant loss on the investment.

Broker Scam Legal Help

If one has been the victim of a broker scheme, it is crucial to retain the services of an experienced attorney as soon as possible.  An attorney can not only review one’s case in order to determine what options one may have, but also the attorney can direct one to the most appropriate course of action.