We represent investors who have lost money to promissory notes. Promissory notes are financial instruments with a written promise by one party (the issuer of the note) to pay another party (the note’s payee) a defined sum of money in the future or on demand.
Promissory notes set forth the terms of a loan’s repayment, and can be secured with a pledge of collateral. Although promissory notes can be appropriate investments for many individuals, fraudsters often use them as vehicles to defraud investors—especially the elderly—out of their hard-earned money.
Many promissory note schemes follow a predictable and fraudulent pattern. First, the fraudster persuades investment or insurance agents to sell worthless, unregistered, and fraudulent promissory notes he or she issued.
Next, investors purchase the promissory notes, lured in by the promise of a high, fixed-rate return – up to fifteen or twenty percent – with a very low level of risk. Selling agents, who may or may not be licensed, may also falsely claim that they’re “guaranteed” or insured.
After that the schemers use a portion of the money they collect from investors to pay the sellers their commissions, but usually abscond with the remainder of the funds. Fraudsters may also use some of the proceeds to support an elaborate “Ponzi” scheme in which money coming in from the sale of new notes pays the interest on older notes.
Other fraudsters try to avoid making repayments of investors principal by persuading investors to “roll-over” their promissory notes upon maturity. These investors may, for at least a time, continue to receive interest payments, but hardly ever get their principal back.
Promissory note scams often target the elderly, bilking them of their retirement savings at a time when they can least afford to lose it.
If you believe you may have lost money in promissory notes please contact us for a free, no-obligation consultation regarding your legal situation and potential recovery options, by phone at 888-998- 0530, via email at firstname.lastname@example.org, or through the contact form on this page.