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18 Feb 2025

Investment fraud is a serious crime that can come with severe penalties. 

Sometimes known as ‘boiler room fraud’, investment fraud typically involves deceiving people into investing in things that will make them no returns. Investors may be given false information about certain products or schemes, or important information may be deliberately withheld or hidden. An investor may even accuse you of investment fraud if they felt unduly pressured into a sale or were given information that they misinterpreted. 

Thousands of investment fraud allegations are made every year. The outcome of these allegations varies depending on the amount of evidence made against the accused – and the quality of the defence. 

If you have been accused of investment fraud, hiring solicitors to help defend you could be key to winning the case. At the very least, it could help greatly reduce any penalties that you are facing. By choosing an experienced and reputable firm such as ABV solicitors, you could build a strong defence and increase your chances of achieving the best outcome.

This post explains more as to why you should hire solicitors, as well as delving more into the different types of investment fraud.

What are some examples of investment fraud?

Investment fraud can take many forms. Some common types of investment fraud that people are accused of include:

Ponzi schemes

Ponzi schemes involve paying old investors returns solely using money received from new investors. If there is no clear proof that you are running a profitable legal business and it appears that you are simply taking money from new investors and giving it to old investors, you could be accused of investment fraud. 

Land banking fraud

Land banking fraud involves selling plots of land to people that are falsely marketed as investment opportunities. In reality, these plots of land are unsuitable for development and investors lose their money. Allegations of investment fraud may be made against you if you are a land broker and an investor believes they have been sold land under false pretences. 

Affinity fraud

Affinity fraud occurs when members of a specific group, such as a religious or ethnic group, are taken advantage of in order to sell fraudulent investment opportunities. Investment fraud allegations may be put forward if group members believe they have been misled and exploited. 

Advance fee fraud

This is when investors are asked to pay a fee upfront in exchange for being promised later returns which they never receive. Investors will typically demand this fee back and further compensation if they receive no return.

Unregistered securities

Selling securities that are not registered with a regulatory body could also result in allegations of investment fraud. This could include anything from unregistered stocks to unregistered mutual funds.

There are many other niche forms of investment fraud. At ABV solicitors, we deal with an array of different cases – including large and complex forms of investment fraud. 

What are the penalties for investment fraud?

Investment fraud can carry various different penalties depending on the nature of the allegations. Some of the common penalties include:

Restitution

The accused may be asked to pay back money to investors equal to the amount that they have extorted. This may include additional interest fees. 

Fines

Fines may be issued to individuals or companies found guilty of investment fraud, which may vary depending on the severity of the crime. 

Civil lawsuits

Investors may demand compensation in the form of a civil lawsuit. This could be on top of restitution or fines. In other cases, an investor may choose to file a lawsuit instead of reporting investment fraud as a crime. 

Imprisonment

In many cases where investment fraud can be proved to be deliberate, imprisonment can be a punishment. For serious cases of investment fraud, offenders may even receive long sentences of many years. 

On top of all these penalties, investment fraud allegations are likely to result in reputation damage if they become public. They could be particularly harmful if you are found guilty of investment fraud. 

How can a solicitor help defend you from investment fraud allegations?

Defending yourself against investment fraud allegations typically requires having a thorough understanding of financial law and all its complexities. This is why it is valuable to hire solicitors who specialise in this area of law.

Investment fraud lawyers will know exactly what evidence to collect to help you build a defence. They are also trained how to negotiate with regulatory authorities or prosecutors and may be able to help reduce any penalties you may face or encourage alternative solutions.

What does investment fraud defence involve?

It is recommended that you seek out legal support as early as possible. Start by booking a consultation in which you can discuss the details of your case. During this consultation, a solicitor will be able to answer any questions you may have.

After this, you can begin building your defence. You will first be asked to help collect evidence that could help with the case, which could include financial records or screenshots of communications. A tailored defence can then be built around this evidence, while also taking into account the evidence that has been presented against you. 

Negotiations can then be made on your behalf. If the case goes to court, our solicitors will be able to represent you in the courtroom, helping to present your evidence and any counter arguments in a clear and persuasive way. 

Why work with ABV solicitors?

ABV Solicitors have worked on a range of investment fraud cases across the UK. We work closely esteemed barristers, leading financial experts and members of the Queen’s Counsel to help build a defence. As a result, we have gained a reputation as one of the top fraud law firms in the country.

If you or someone you know has been accused of investment fraud, get in touch with us in order to book your first consultation. You can contact us by email, by phone or by filling in our online form. We will be able to start working on your case as soon as possible, allowing you to build a thorough defence strategy.