Watch out for investment scams: How to avoid becoming the next victim

Watch out for investment scams: How to avoid becoming the next victim

Case Overview：

Mateo is a retired teacher who wants to increase his retirement savings through investments. One day, he saw an advertisement on social media for an investment company called “Caifabao”, which claimed to offer investment projects with an annualized rate of return of up to 20%. Moved by the news, Mateo decided to learn more about it.

Legal Response:

Consultation and evidence collection:
Mateo's family helped him contact a lawyer. The legal team first conducted a detailed preliminary consultation and learned in detail about Mateo’s investment experience, contract terms, transaction records and other relevant information. Through this consultation, the lawyer confirmed the basic circumstances of the case and developed a preliminary legal strategy.

Gather evidence:

1. Transaction records:
The lawyer assisted Mateo in collecting all transaction records, including transfer receipts, investment contracts, dividend records, etc.
2. Correspondence records:
The lawyer collected all communication records between Mateo and the "Caifabao" investment advisor, including emails, text messages and phone records, to prove the other party's fraudulent behavior.
3. Website and advertising materials:
The lawyer kept Fortune's advertising and promotional materials on social media as evidence.

Legal approach and preparation for transnational litigation:

The lawyer assisted Mateo in reporting the case to the local police and provided all the collected evidence. Lawyers work closely with the police to coordinate the investigation process and provide legal advice and support.

Litigation and Compensation:

After thorough preparation, the lawyer filed a civil lawsuit against the "Caifabao" company and its principal persons in the local court, demanding the return of the defrauded funds and compensation for economic losses. The lawyer applied for an asset freezing order and successfully froze part of the assets of the "Caixbao" company to prevent it from further transferring property.
During the litigation process, the lawyer actively negotiated with the other party and eventually reached a settlement agreement. The "Caifabao" company agreed to return part of the defrauded funds and assume certain compensation responsibilities.

Result and Recovery:

Through the professional services and unremitting efforts of the legal team, this case finally achieved a partially successful result. Although Mateo failed to recover the defrauded funds in full, he successfully recovered about 60% of the investment amount and obtained a certain amount of financial compensation. In addition, the success of this case also provides a valuable warning to other potential victims, reminding them to be cautious in the investment process and ensure the safety of their investments.