A Connecticut financial planning lawyer can provide help in evaluating investment opportunities and in protecting yourself from scams. Unfortunately, schemes to defraud investors are far too common, and many people end up losing a substantial amount of assets when they accidentally fall victim to a scam. Avoiding this outcome is vital because you work too hard for your money to lose it to someone who engages in dishonest activities.
Nirenstein, Horowitz & Associates provides investment advice and comprehensive help with the financial planning process. Our firm can help you to set investment goals, identify reliable investments, and review financial paperwork so you don’t inadvertently give your life savings to someone who is not trustworthy. You can count on our legal team to provide the right advice for your situation because of our legal credentials, decades of collective experience, and extensive knowledge of how the law and finances intersect.
The recent arrest of a Connecticut man for running a large-scale Ponzi scheme underscores the importance of getting advice from a trusted source before any investment decisions are made.
Connecticut Man is Arrested for Running Ponzi Scheme
US News and World Report provided information on the Connecticut man who was recently arrested for defrauding investors. The man was an accountant and a tax preparation professional who also provided investment opportunities to his clients.
Starting in 2007, he began telling some of the people who came to him for advice that he had clients in need of money to fund real estate projects or business opportunities. He explained these clients could not get funding from traditional sources and were looking for investment opportunities. He promised that investors could earn an annual rate of return as high as six to eight percent.
Many people trusted him, because he was considered a friend. He had served as a financial advisor and had prepared their taxes for years, had gone to their homes and attended their weddings, and had built up a very high level of trust. As a result, people gave him money to invest in these opportunities he had described.
The problem is, there were not actually any investment opportunities. He simply took the money that people had given him for the fake investments, which aded up to more than $1.4 million in funds. He used the money that he had obtained from clients to pay his personal expenses and to do things like take international trips. His clients ended up losing the investment funds that they had provided to him on the basis of the false promises that he had made.
The man pled guilty to the fraud, admitting to mail fraud and money laundering. He admitted to his crimes back in September and he was freed on a bond of $250,000. However, prosecutors said that before he was sentenced for the offenses that he had committed, he violated the terms of his supervised release. He did so by having contact with the victims of his fraud crimes.
For the crimes which he committed, he was sentenced to almost six years of imprisonment. In addition to five years and eight months of incarceration, he will also be on probation for three years. While this means he is facing serious consequences for the fraud offenses that he committed, unfortunately his victims could still be left facing financial hardship as a result of the loss of the funds that they entrusted him with.
Unfortunately, fraud crimes like this happen far too often, and they frequently occur under similar circumstances. People who are in a position of trust can end up abusing that trust and stealing hard-earned money from people who thought they were making wise investments and sound financial decisions.
Avoiding this type of loss is vital, which means that anyone considering any financial investment should get unbiased legal guidance from a trusted professional who can review the investment terms and documentation and help you to assess the risks. Do no assume that just because you know someone or just because a person you trust says an investment is a good opportunity that the investment is actually something which you should buy into with your hard-earned money.
Getting Help from A Connecticut Financial Planning Lawyer
Nirenstein, Horowitz & Associates will work with you to ensure you do not fall victim to investment scams. Let our firm help you to make smart choices about where and how to invest your money so you can grow your wealth, achieve financial security and provide a strong legacy for your loved ones. Give us a call today at 860-548-1000 or contact us online to find out more about the assistance that we can offer you.