Detection of Insider Trading | Investment Fraud

Especially in our financial metropolis on the Main, where conventional banks as well as direct banks and financial services flourish and where multi-million deals are concluded, investment fraud is thriving, as our investigators in Frankfurt ascertain on a daily basis. If you have any suspicions, do not hesitate to contact our corporate investigators: +49 69 1201 8431.

Supposed Top Investments: Lakeside Mansion or Shack in the Outback? Due Diligence by Investigators from Frankfurt

Just as diverse as the possibilities for financial investments are, so too are the methods of fraud. Who has not heard or read of lucrative properties offered to investors as a “surefire tip”? These offers tend to be accompanied by matching images showing, for instance, villas in remote regions of any given continent or holiday homes on a beach near an alleged tourist centre. The showcased properties are naturally far too distant to be inspected in person. The trusting investor, often rather naïve, relies on the word of the “reputable” investment adviser and sacrifices hard-earned savings in pursuit of a dream home or a quick return—only to discover later that they have purchased a dilapidated hut in the middle of nowhere. The money, like the adviser, has vanished without trace.

However, it need not come to that. If a wealth or investment consultant presents an offer that allegedly promises unusually high gains, you should be on your guard. Turn to the investigators of Kurtz Investigations Frankfurt. We will scrutinise the offer just as thoroughly as the adviser, protecting you from financial loss: kontakt@kurtz-detektei-frankfurt.de.

Insider Trading: Criminal Exploitation of Confidential Information

Up to 2013, practically anyone who could present commercial training in the relevant sector could become a financial, insurance or investment consultant—some with greater, some with less effort. To protect consumers, however, regulations have changed and the conditions for practising these professions have become more stringent: advisers must prove their reliability and sound financial circumstances, undergo annual audits and submit the audit report to the competent Chamber of Industry and Commerce or trade authority. If you wish to invest your money, whether in property, shares or funds, turn first to the bank you trust. The investment advisers there are trained, certified and work with equally qualified external partners.

Nevertheless, some investment advisers with fraudulent intentions still manage to be classified as reputable by the authorities while acting to their own advantage at the expense of others. Persons active in the financial sector often have contacts with listed companies and management teams across various industries. Information not intended for the public is passed on—consciously or unconsciously—and the adviser can use such information either for personal benefit or that of clients. For example, an adviser may learn of an impending merger between two companies. He would purchase shares in these companies, as such shares typically rise sharply following a merger. This constitutes the exploitation of insider information, which is a criminal offence in Germany. Conversely, if he learns of a company’s imminent insolvency before it is made public, he may sell his shares in time.

Deliberate Misadvice

The offence is aggravated when the adviser knowingly misleads clients, for instance to receive a lucrative commission. If he becomes aware of an upcoming insolvency of a public limited company and nevertheless advises his clients to purchase its shares in order to generate a commission, he is acting knowingly to their detriment.

Proving that an investment adviser has acted improperly—perhaps knowingly—is very difficult, but mostly not impossible. If you suspect that your adviser has taken advantage of you, place your trust in the investigators of Kurtz Detective Agency Frankfurt: +49 69 1201 8431.