By: Julio Perez, Spring 2018 IAC Graduate Research Assistant
An asset recovery company is a company which extends its services to scammed investors with promises to recover their lost assets in exchange for sometimes substantial fees. However, all might not be as it seems. The problem with asset recovery companies is that sometimes they offer services at great expense when the SEC or a clinic can do those same services free of charge.
How simple is it to fall in this trap? In 2009, the SEC obtained a judgment against Asset Recovery and Management Trust (Armtrust) for defrauding hundreds of investors of more than $1.21 million. The company allegedly engaged in a complete fraud that preyed on investors who had already lost money. Luring victims of previous scams into false promises of recovering their lost investments and then trapping them in a Ponzi scheme.
Translated: “Wait, maybe I should do more research or call a clinic before I go to an asset recovery company.”