Los Angeles Criminal Defense Lawyer Blog

Bernie Madoff isn't the only con artist stealing millions from gullible investors. Investment scams have increased since the economy tanked. Investors are looking for a quick way to recoup losses and con artists are only too happy to relieve them of their cash. Here's how the top five scams work:

• Ponzi schemes lure investors with promises of high returns. Money from new investors is used to pay off early investors until the pyramid collapses. Most investors lose everything.


• Real estate investment cons promise high returns for flipping real estate. Investors lose when rehabs are never performed or property is located in undesirable locations.


• Investment/financial-adviser fraud occurs when an unscrupulous advisor takes advantage of a client's lack of oversight. Funds may be embezzled, the cost of services inflated or fictionalized services charged.


• Oil and gas investment scams assure quick profits on oil and gas ventures that never get off the ground. Watch out for unregistered securities.


• Affinity fraud targets a group -- family, church, work -- with which the con artist has a personal connection, using personal influence to dupe people into fraudulent investments.

Fraud is theft. "In California, theft crime charges can range from a minor shoplifting charge (for stealing something valued under $400) to grand theft, which can be charged as a felony and could require a state prison sentence," said expert Los Angeles criminal defense attorney Stephen Rodriguez. In California, fraud is a wobbler, "a crime that can be prosecuted or charged as either a misdemeanor or a felony," explained Rodriguez. The nature of the crime, dollar amount involved and defendant's prior record can influence the charge. With the severity of sentencing hanging over wobbler offenses, expert legal representation is critical. "The right attorney can tip the justice scales in favor of a misdemeanor and minimize the impact of a wobbler crime," Rodriguez said.

-Legal Pro