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：

Mr. Li, a retired teacher, wanted to increase his pension by investing. One day, he saw an advertisement on social media for an investment company called Fortune Bao, which offered investment projects with an annualized return of up to 20 percent. Intrigued, Mr. Li decided to take a closer look.

Legal Response:

Consultation and evidence collection:
Mr. Li's family helped him contact a lawyer. The legal team first conducted a detailed preliminary consultation, learning in detail about Li's investment experience, contract terms, transaction records and other relevant information. Through this consultation, the lawyer confirmed the basic situation of the case and worked out a preliminary legal strategy.

Gather evidence:
1. Transaction records:
The lawyer assisted Mr. Li to collect all the transaction records, including transfer vouchers, investment contracts, dividend records, etc.
2. Correspondence records:
The lawyer collected all correspondence records between Li and Fortune's investment adviser, including emails, text messages and phone records, to prove the other side's fraud.
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 Mr. Li in reporting the case to the local police and provided all the evidentiary materials collected. The lawyer worked closely with the police to coordinate the investigation process and provide legal advice and support.

Litigation and Compensation:
On the basis of full preparation, the lawyer filed a civil lawsuit in the local court against the company and its main principals, demanding the return of the cheated funds and compensation for economic losses. The lawyer applied for an asset freezing order, which successfully froze part of the assets of the "Fortune Treasure" company and prevented further property transfers.
During the course of the lawsuit, the lawyer actively negotiated with the other side and finally reached a settlement agreement. The company agreed to return part of the cheated funds and assume certain liability for compensation.

Result and Recovery:

Through the professional services and unremitting efforts of the legal team, the case finally achieved a partially successful outcome. Although Li failed to recover the defrauded funds in full, he managed to recover about 60 percent of the investment amount and received certain financial compensation. In addition, the success of this case also serves as a valuable warning to other potential victims, reminding them to be cautious in the investment process and ensure the safety of their investments.