In the case of investment fraud typically the moment the fraud is detected part of the invested funds either “disappear” or are found to have already been spent by the fraudster. Some claims by affected investors can still be settled, others not. On many occasions the fraudsters keep only the large investors quiet with part payments/employees of securities dealers give priority to individual investors with regard to surrender/repayment in order to win them over as customers later.
The challenge lies in choosing the procedure that will give the individual aggrieved party the best possible chance of recovering his funds.
Seek advice from a lawyer or investment expert specialised in capital market law. Based on the course of events and with the aid of written documents such as the sales brochure or deposit extracts he can assess whether a case of investment fraud exists, or “only” an adviser error – and then take the appropriate steps.
Keyword: “Collective redress”
Solidarity seldom exists among capital investors. One reason for this is that in many cases invested capital consists of illicit earnings and the investors concerned are therefore inclined to discretion: they fear denunciation before (foreign) fiscal authorities. Furthermore, there is no institution for collective redress in Switzerland, against which background the potential for collective action appears less likely.