Most financial advisors will tell you that every investment carries some element of risk. But when an investment is fraudulently presented, those risks become greater, unexpected and far more costly. One typr of fraud involves luring investors with exaggerated claims of the value of the investment. If this is the case, you may need a securities fraud attorney to assist you in pursuing a claim to recoup your financial investment.
Making exaggerated or deceptive claims in order to draw investors is not viewed kindly by the SEC. Such is the case with the city of Victorville, CA.
The Securities and Exchange Commission has filed suit against the city, alleging that the city defrauded investors by misrepresenting the worth of some property, namely airport hangers, by greatly overstating their value. The SEC claims that the city, struggling financially since the closure of an Air Force Base in 1992, made this misrepresentation as part of a plan to raise funds for redevelopment through the sale of municipal bonds.
The SEC alleges that investors were defrauded because they received inaccurate information which made it impossible for them to weigh the risks of investing in the municipal bonds.
Making informed decisions regarding investments is difficult enough, but false information and misrepresentation can often mean that an investor is taking on a risk he never intended and could suffer losses that he could not reasonably foresee or predict.