Suspicion of investment fraud? Read this blog!

The pattern beneath the pattern

There is a pattern we see again and again. Furthermore, it reveals something that rarely appears in standard articles. Investment fraud is often discussed as if it were one single thing. For example, people speak of a share scam, a crypto scam, bonds, or a fund with a name closely resembling an existing Swiss or London firm.

In the conversations we have on a daily basis, however, something else stands out. The products shift. The brand names shift. Still, the architecture underneath is remarkably stable. Specifically, the same conversational arc returns. The same way “profits” are made visible long before a single euro ever flows back. Therefore, someone, without noticing it, starts defending why this case really is different.

Anyone who thinks this could not happen to them is welcome to think so. However, we see something else in practice. For example, we see business owners, doctors, and former bankers. We see people with a well-run practice and a healthy dose of suspicion. Precisely that healthy suspicion is anticipated by the other side. Moreover, it is built into the construction.

You are not alone. Furthermore, you do not have to solve investment fraud on your own. For a broader picture of how this works in crypto, see also our article on crypto fraud and what it really looks like in practice. We will help to bring clarity. Often, that starts with one calm conversation in which someone goes through the facts with you.

Why an outsider rarely sees investment fraud

Investment fraud in its modern form is interwoven with crypto. Furthermore, it is interwoven with corporate share structures and foreign legal entities. Additionally, it relies on payment flows that pass through three to five jurisdictions before they come to rest somewhere.

A friend, an accountant or a personal banker may read along with the best of intentions. However, they lack visibility on the chain itself. We perform fact-finding on that chain. Moreover, public warning lists from regulators such as the Dutch AFM warning register on investment fraud can be a useful first reference point. Still, they only cover a fraction of what actually circulates.

That means no promises. Furthermore, no reassuring talk. Also, no suggestion that everything will resolve itself. Instead, after our analysis, what really happened is laid out on the table. So is where it happened. And what it means for the position of the person who engaged us. Sometimes that is a relief, because more is possible than expected. Sometimes, however, it is hard, because clarity can be hard. In every case, it is something other than continuing to guess.

Looking for clarity? Feel free to reach out to Paucitas without obligation on +31 20 244 5774. Alternatively, by email at paucitas@paucitas.com. Or through the contact form below this article. Moreover, we are also happy to receive people at our office in Amsterdam, so you are not stuck in the digital world.