How to protect an investor's encroached financial interests?
Posted: Mon May 18, 2020 10:27 am
There is an essential question to all the investors who, at this moment, are wondering whether they will levy their invested fund, what course of action should be taken to usefully protect their encroached financial interests. There is a solution!
1. First and foremost, the crowdfunding platforms' unlawful actions can not be seen as an ordinary business risk that the investors should bear. This assumption provides that the investor is still entitled to the compensation for the damages suffered thereof.
2. There are strong indications that this specific segment of services will soon be thoroughly regulated and monitored within the EU, for instance, the European Commission has prepared a proposal for a Regulation on European Crowdfunding Service Providers (ECSP) for Business.
In Latvia, the law enforcement agencies in the last two years have been keen on investigating several leads of fraudulent activities of these platforms, which could signify that certain cooperation is possible, and the law enforcement agencies are up to the task to do so investigate these cases. Therefore, one approach would be to initiate criminal proceedings.
More tellingly, it is useful to do everything reasonably possible to secure the investors' claims by requesting the court to apply interim measures not only against the platform in question but also against the individuals controlling the platform. Only timely pro-active conduct could lead to the actual recovery of the embezzled fund.
In case if some questions arise, do not hesitate to contact me!
1. First and foremost, the crowdfunding platforms' unlawful actions can not be seen as an ordinary business risk that the investors should bear. This assumption provides that the investor is still entitled to the compensation for the damages suffered thereof.
2. There are strong indications that this specific segment of services will soon be thoroughly regulated and monitored within the EU, for instance, the European Commission has prepared a proposal for a Regulation on European Crowdfunding Service Providers (ECSP) for Business.
In Latvia, the law enforcement agencies in the last two years have been keen on investigating several leads of fraudulent activities of these platforms, which could signify that certain cooperation is possible, and the law enforcement agencies are up to the task to do so investigate these cases. Therefore, one approach would be to initiate criminal proceedings.
More tellingly, it is useful to do everything reasonably possible to secure the investors' claims by requesting the court to apply interim measures not only against the platform in question but also against the individuals controlling the platform. Only timely pro-active conduct could lead to the actual recovery of the embezzled fund.
In case if some questions arise, do not hesitate to contact me!