How do you know if you’re being hustled? It’s been well documented that some stock brokers and brokerage firms use disreputable tactics to earn extra commissions without fulfilling their fiduciary responsibility to you, the client. So you’ve lost money in the stock market and you suspect foul play. Now you need a stock loss recovery firm.
But beware, because they have their share of sharks too, and there are common traits to spot the scammers. Aggressive calls from out of the blue If you get a call from a stock loss recovery firm, the first thing that you need to wonder is “where did they get my number?” -- Since client records are private. There are some firms accused of getting client lists illegally, such as Cold Spring Advisory and Louis Ottimo, who are being sued by national Securities. Once firms get the client list from a firm, they systematically call that list to identify these that have had stock loses. They’ll offer to review the client's portfolio for free. Then, once they see what a “great” case you have, they aggressively push you to take action. Now you’re on the hook. Notes: some of these same people that offer to help you recover your stock loss are the same people that stole millions when they themselves were stock brokers. For example, Louis Ottimo was a stockbroker for eight years or so, until he was finally -- after many sanctions, liens and lawsuits -- barred from the industry by FINRA (the securities industry regulatory body, and has recently filed for personal bankruptcy to go with all the companies he has bankrupted through the years, many of those because of lost lawsuits. Advance fee requirement One of the most important red flags by disreputable stock loss recovery firms is upfront payment requests for filing and other fees. You’ll be assured that you’ll get it back from the award settlement because you have a great case. This is part of the scam: you don’t have a great case and they know it. So then need to earn before it goes to arbitration. In his article “How to Lose a Stock Loss Recovery Case with Cold Spring Advisory Group in Three Easy Steps” he shows that these scam companies don’t just lose cases because they are without merit, but in some instances because they are incompetent too. If they ask for an advance, walk away. There are too many other firms out there, reputable ones who will tell you if you really have a valid claim, and will represent it without upfront fees. Impressive, self-generated web resources To make their services look substantial, impostors will have plenty of glowing articles about the wonders they can achieve. The real stories will appear on legitimate news organizations. The scammers will merely be redisplays on websites of their own press releases, written to look like a news story. They’ll write a splashy story to look like breaking news, then pay to distribute it via a news wire. The websites -- some legitimate outlets -- that are members of that news distribution service will automatically display the press release. However, it is not news in that the content was never vetted by an editor for accuracy. For example, look at Cold Spring Advisory Group. There are plenty of article posts -- on credible news outlets, claiming they’ve recovered millions for their clients as the largest recovery company in the nation. However, when you look closely you’ll realize that these are all redisplayed press releases prepared by Cold Spring Advisory Group, or articles written by them (or their agents) and posted to sites that allow for guest posts, again, not vetted for truthfulness by any editor. Note: By the way, Cold Spring Advisory Group lists Michelle Ottimo, wide of Louis Ottimo as the Managing member and president, despite her not having any experience in the securities industry. But according to reporter according to reporter Brie Austin. Louis Ottimo is the de facto president, pulling the strings of the company from the shadows.
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