What Is Commodities Fraud?

This video explains how to seek compensation for commodity fraud. A commodities attorney explains how these cases go unreported. Commodities fraud involves the sale of non-existent or overvalued commodities. The scam usually involves investors being duped into believing they can make a significant profit by investing in the commodity futures market.

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The scammer may claim to be an expert with access to manipulate the price of a commodity, such as gold, silver, or crude oil. Alternatively, they may sell shares in a company that owns an oil field or other resource and promises vast returns on investment.

Commodities fraud is not only limited to the commodities market but can also occur in other markets, such as the stock market. The main objective of this fraud is to deceive investors into believing they have a good investment opportunity with a high return on investment (ROI). It can be perpetrated by individuals or companies that sell investments in commodities. Some schemes also require you to put up additional funds when the trades are not profitable.

A commodities attorney can help you with all commodity-related issues, including contracts, licensing, and regulatory compliance. A commodities attorney enables you to understand the law surrounding commodities trading and secure your rights.