Frequently Asked Questions on Scams and Fraud


Q: How do you get my money back for me?

There is no guarantee you will recover your money. However, our strategy has been effective. We approach each case differently. However, the basics are the same. We develop our cases along two lines, securities fraud and criminal fraud and criminal activity. We know that the civil approach is, generally, ineffective. You are going to end up with hefty legal fees and a judgment. We refer fondly to judgments as “legal toilet paper”. The average return, cited in various legal materials is approximately 3.7%. Therefore, after a thorough research, documenting each allegation, we file criminal complaints with the proper authorities, that have led to prosecution and prison. By developing the criminal case, you are relieved of the burden of trying to pursue civil damages (judgments) that are often the result of civil litigation.

Q: Can't my attorney do what you do?

From our conversations with attorneys and, the fact, that we have attorneys for clients, yes and no! Unless you reside in the State where the investment scam originated, you will be forced to use an out of State attorney, travel to that State and rent cars and hotel rooms, which can become extremely expensive. Your attorney may not be familiar enough with the regulations, statutes and idiosyncrasies of this sector to prepare or advise you on the securities and/or criminal complaint process that these cases require. Therefore, most attorneys attempt to handle things through a civil process which leaves you with two things: a rather hefty legal bill and a judgment that is often difficult to collect. See above.
 
 

Q: What do you do differently from other companies claiming to do what you do?

We are not familiar with any company that pursues these scams with the approach we have developed. We find there are 4 different types of businesses of this type in this sector: (a). Companies that gather a lot of clients and mail a lot of intimidating “Form Letters”. Those clients of companies that do not respond or do not capitulate to the intimidating rhetoric are advised to get an attorney. (b). Companies that are fronts for bogus deals. These guys lull you to sleep with tough talk about getting your money back but are really setting you up for an investment in another scheme. (c). Companies like (b) but their end results are to hook you up with an attorney filing a “Class Action” suit. (d). There are now lawyers forming companies to go after your money.

Q: How long is my contract in effect?

A: We go after these companies and individuals from a, a primarily, criminal perspective and do not stop until they have returned your investment, end up in prison or they die. In the last case, there are few further options available. Once we engage, we do not disengage until a resolution has been reached, positive or negative.

Q: How do I know this isn't a scam?

Honestly, you don't. However, Colt Ledger can offer you several excellent reasons to put your faith in our company.
Learn More:
 
 

Q: How long does it take to get results?

That depends. There are three phases of the process in which we conduct our business. Phase I begins in our Research & Investigation Department into the alleged Investment fraud scheme. Once you have completed the paperwork and given us the go-ahead, it takes an average of 45-60 days for our R&I Department to put the case together. At that time, we send the packet with all our findings to you for approval. Upon your approval, we forward the alleged investment scam information to the company under investigation, for their response, which begins Phase II. From this point, we allow 20-30 business days for a reply from the company, which is usually one of three responses. They will either offer a settlement (typically 56% of your original investment, we are currently recovering 70% to 75% across a wide range of scams, where the opposing entity will enter into negotiations. We have had a FedEx check on the way back to the investor within an hour of our initial contact. That's the best case scenario. Sometimes they tell us, “See you in court”, or they simply do not reply. With the latter two responses we move into Phase III, wherein we file complaints with the appropriate authorities and work to have the company involved in securities fraud prosecuted.

Q: What agencies are involved in Phase III?

We file complaints based on our findings and experience with a wide array of authorities, at our discretion, who have jurisdiction over the case, along with, possibly, the local newspapers, radio stations, TV stations and social media sites in the area in which the company operates asking for any and all information about the company currently under investigation, In addition we are looking for victims and disgruntled employees, etc. A sampling of the agencies notified may be:

Security and Exchange Commission
FINRA, NASD
CFTC
SEC Oil and Gas Task Force
Federal Bureau of Investigation
U.S. Secret Service
U.S Attorney General
Internal Revenue Services
United States Postal Services
Federal Trade Commission

Q: What are your fees?

We have two fees. Our one time Research & Investigation fee is based on the total amount of your losses, not the number of companies you have invested with and is non-refundable. The second is our Recovery Fee, which, according to State and Federal Law must be on an entirely contingency basis. The total of our fees are 15%, which means that our clients will net- net 85% of their recovery. Once we engage we never disengage from the pursuit of the offending company until a resolution is reached, positive or negative.
 

Facts – Definitions:

Accredited Investor:

In most instances, an accredited investor is 1.) an individual with a net worth, or joint net worth with a spouse, which exceeds $1 Million at the time of purchase, or 2.) with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
A full definition of what the SEC considers to be an accredited investor may be obtained from the SEC's website by clicking here.

Joint Venture:

A joint venture, or joint adventure, is but another name for a special partnership. It might be distinguished from a general partnership in that the latter is formed for the transaction of a general business, while a joint venture is usually limited to a single transaction. That is, a joint venture is a special combination of persons in the nature of a partnership engaged in the joint prosecution of a particular transaction for mutual benefit or profit. - Texas Workforce
New firm formed to achieve specific objectives of a partnership like temporary arrangement between two or more firms. JVs are advantageous as a risk reducing mechanism in new-market penetration, and in pooling of resource for large projects. They, however, present unique problems in equity ownership, operational control, and distribution of profits (or losses). Research indicates that two out of five JV arrangements last less than four years, and are dissolved in acrimony. See also strategic alliance. - BusinessDictionary.com
According to the article Can You Skirt the SEC With Joint Ventures?, an investment contract under the Howey Test was defined as follows:
1. an investment of money due to
2. an expectation of profits arising from
3. a common enterprise
4. which depends solely on the efforts of a promoter or third party

Clause #4 gets to the heart of the ‘joint venture' question. Because you are offering somebody an opportunity to profit by entering into business with you and those efforts to profit depend solely on you, you are thus offering a security and have to take care of your securities law disclosures and any SEC filings you may have to do.
 

Security/Securities:

[A]ny note, stock, treasury stock, security future, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a “security”, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.
- §15 U.S.C. 77b(a)(1)