4 Biggest Investment Frauds in History That You Should Know About

In this blog post, we will discuss 4 of the biggest investment frauds in history that you need to know about. These are scams that have taken place throughout different eras and continued to fool investors because people don’t want to believe them. We’ll go over why these scams work so well, what they involve and how much money was lost as a result.

Biggest Investment Frauds In History:

One of the biggest investment frauds in history was perpetrated by Bernard Madoff. He orchestrated a $65 billion Ponzi scheme that lasted for 40 years from start to finish. This is one of the reasons why people are always so skeptical when they hear about new investments because it’s hard not to think back on this scandal and question the legitimacy of the supposed opportunity.

Mt. Gox was a digital currency exchange that handled 70% of all Bitcoin transactions on the planet and had grown to handle $350 million in trades per day when it got hacked by hackers who stole 850,000 Bitcoins from Mt. Gox’s bogus online “accounts.” They were able to do this because they had gained access to the private keys of Mt. Gox and were able to transfer bitcoins during a time when the exchange was offline for server maintenance.

The Castle Grande scheme took place in 1984 and involved David Paul Brown, his wife Linda Taylor-Brown, their associate James Fife III as well as attorney William Lerach who all conspired to defraud investors by selling securities in a fake real estate company called “Castle Grande.” They used promises of high returns on investments and the lure of tax shelters that never really existed.

The Stratton Oakmont scam was perpetrated by Jordan Belfort, who had been convicted for swindling $200 million from investors with his unscrupulous investment firm. He was able to do this by selling highly risky stocks that were supposedly “guaranteed” and would yield high rewards for investors if they played their cards right.

There can be many more scams that you can read about and learn what not to do if you want to keep your money safe. If you ever find yourself in the middle of a situation like this, make sure you reach out to a professional investment fraud lawyer like Erez Law and let him help you recover your money.

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