The financial crisis looming in the headlines has been given a villain in Bernard Madoff. Allegations against Madoff are the stuff of legend, and the extent of the apparent deception and disregard is staggering. This is the face of securities fraud. And, though the numbers are large and the jargon thick, Madoff himself has admitted that his crime is basically a Ponzi scheme, the largest the world has ever known.

This type of story is what we have grown to know as securities fraud. Losses in the millions and billions. Deviance and deception rotting a towering Wall Street institution from the inside out. Soaring, world-renown financial figures collapsing under their own avarice. It is sensational, it is spectacular.

However, securities fraud needn’t be elitist or exclusive, elaborate or erudite, it need only be fraudulent and illegal, whether it costs an investor $5 billion or $.05. More common than the splashy front-page schemes are the small-time frauds, committed against the small-scale investor. One bad broker (often paired with one poor middle manager or other oversight mechanism) can ruin the lives of many investors. While Madoff is certainly headed for dire legal straights, the simple fact that can is able to post a $10 million dollar bond puts his situation light years away from a middle-class couple losing their nest egg to a predatory or otherwise incompent small-time broker. The scale is different; the crime the same.

In some ways, it’s even possible that the newsworthiness and notability of such large-scale frauds makes it easier for the average investor to be the victim of West Virginia securities fraud. When we come to concieve of financial fraud as something that happens to rich people, on a massive scale, we can become blind to any other kind of deception, even those red flags that should cause us to take notice. To invest safely, follow these tips from the SEC:

Pose questions AND check out answers. Those hoping to defraud you rely on one unfortunate fact: most people will not do their homework before investing.

Before you invest, investigate the company. Be sure you fully understand the business, products, and services before making an investment.

Research the salesperson. Check out the person chamioning the investment prior to investing, regardless of any previously-existing relationship.

Remain suspicious of unsolicited offers. With information everywhere, it’s much easier to find out about hot stocks - but also much easier to make a stock appear hot. Do your own research and be doubly viligent if you learn of the stock through e-mail, fax, or online.

Even taking precautions, it is possible for the best investor to be duped. Once this happens, what separates a good investor from a bad investor is reporting the incident and seeking the legal counsel of an experienced securities fraud attorney.

If you or a loved one is in need of legal assistance, call Underwood Law Offices at (304) 522-0508 or toll free (304) 522-0508 or toll free (866) 400-3920 or submit an online questionnaire. The initial consultation is free of charge, and if we agree to handle your case, we will work on a contingency fee basis, which means we get paid for our services only if there is a monetary recovery of funds. In many cases, a lawsuit must be filed before an applicable expiration date, known as a statute of limitations. Please call right away to ensure that you do not waive your right to possible compensation.