Broker fraud

[ravil]

Hello everyone,

I am not sure if this is the right place to post this question, though I would appreciate any help. Thanks!

My parents decided to invest some money about 8 months ago ($50,000 precisely). They used the same consulting person who they dealt with before. He is not associated with any company, and works independently.

The thing is that when they signed a contract, the broker mentioned that the maximum they can loose is 5% from the total amount they invest. That is the reason why they decided to invest in the first place. He also said that it is backed up by some insurance. He hand written that on the contract.

However, he didn't give a copy of the contract to my parents right away, claiming that he has to make a copy of it first, and then he'd bring it to them. Meaningless to say that they never saw that paper ever since. They do have another paper, though, that is signed by both parties and says that my parents are giving the money to the broker to invest.

As of by now, they lost almost all the money due to the broker's incompetency (they have a little more than a $1000 left). When they tried to get their promised money back, the investor said that he can't do that yet. He also refuses to give them the contract they signed claiming that it has never been signed.

If my parents would go to court with that, what would be their chances?
I know that the chances of getting the money back are pretty low, but still... Maybe there is something else you'd suggest.

Thank you, I would appreciate all your replies!

Oh, and it all happened in Canada, ON.

[Fleurette Ronnie]

Good question but you did not state when it was done and what program it was done under.There may have been fraud and then again several years back there were stated income programs as well as no documentation at all. If you supplied the answers to the broker and then signed the application as being true then yes they can come after you.