Fake Technology Investment Scheme Calls for Expertise from a Florida Stock Fraud Lawyer

Like many investment schemes, the opportunity to invest in a Florida technology company developing a product for the NFL sounded too good to be true. In fact, it was entirely false. Now three Florida men are in prison for their roles selling shares in the fake company.
Stock fraud, also known as securities fraud, is a scheme to entice investors to make buy stock using information that is incomplete, misleading, or even false. The untrue statements can be related to a company’s financial statements, or its business plans. When an investment opportunity sparks suspicion, a Florida stock fraud lawyer can help you determine what to next.
In the fake NFL technology company scheme, federal prosecutors said that the victims, many of them seniors, were enticed to invest in a Miami Beach company that the fraudsters claimed was soon-to-go public, the South Florida Sun-Sentinel reported.
In court, the three men admitted that they tricked investors into buying shares in the fake company. They  claimed the company, “First Down Laser System,” was developing a laser line for the football field that would be visible to players and fans. They also claimed that by more quickly marking first downs in football games, more TV broadcast time would be available for advertisers.
The fraudsters falsely told investors that investment returns were guaranteed, and the technology would be used by the NFL. But some investors received stocks in a completely different entity while others received nothing at all. In addition to serving prison time, the fraudsters were ordered to pay their victims more than $1.8 million in restitution.
Stock fraud comes in many forms. If you have been a victim of a fraud, or if you suspect one, we can help you determine what legal courses of action are available to you. For more information, contact us.