Fraudulent conversion occurs when a person takes another person’s assets or goods for their own personal gain. For example, brokers often have the trust of their customers and may use that trust to obtain access to their funds. If a broker takes a customer’s funds without making any real investment and uses it for their own interests, this would be conversion fraud.
If you have suffered losses due to conversion fraud, the attorneys at Oakes & Fosher have decades of experience handling these types of complex cases and can help with your case. Call today for a free case evaluation.
Common Types of Conversion Fraud
Converting a customer’s funds – essentially stealing – can occur in a variety of forms. For example, it can occur through a broker’s creation of bogus promissory notes from a fictitious company. Conversion may also occur when a broker “borrows” funds from the customer and fails to pay the money back. All brokerage firms prohibit brokers from borrowing money from their customers.
Another common example of fraudulent conversion is when a broker talks an investor into investing in a scheme, with promises of high return and little risk, which typically turns out to be a Ponzi Scheme. A Ponzi Scheme involves taking new investor funds and distributing them to previous investors who are told that the money is a return or profit on their investment. While fraudulent conversions can happen to any investor, typically, victims of conversion fraud happen to unseasoned investors, such as the elderly.
Filing a Conversion Fraud Claim
Fraudulent conversion claims are complex and require substantial proof of damages. For example, if a broker stole investment money, there needs to be proof of your financial losses. Or, if someone has stolen property from you, but returned it without you having suffered any damages, there would need to be proof of business harm or personal damages.
Without proof of damages, you do not have grounds to file a fraudulent conversion claim. However, if you do have proof of damages, with help from an experienced business tort attorney, you can file a claim and hopefully recover your financial, business, or personal losses caused by conversion fraud.
Get Help with Your Conversion Fraud Claim Today
If you have been the victim of conversion fraud, contact the attorneys at Oakes & Fosher today for a free case evaluation. Our team has decades of experience in handling securities fraud claims, such as conversion fraud, and will fight to recover the most favorable outcome for your situation. We offer free, no-obligation case evaluations. Call or contact Oakes & Fosher today to schedule an appointment.