Stock Fraud Scam Ponzi Victim Theft Loss Tax Deduction, Recovery and Relief
Fraud victim impact testimony shows
that while a stock scam or investment fraud victim may not ever
see financial restitution to investors
from the scammers through criminal disgorgement under the Victims
of Crime Act or civil litigation,
he or she may be entitled to what is referred to as a casualty or theft
loss tax deduction which is for deducting a theft loss or an embezzlement
loss deduction caused by broker misconduct while investing.
So let Uncle Sam take part of the hit for your loss. If the United
States Government had used your tax money to protect investors
from the prevalent scamming vultures in the first place your pain
and misery might have been avoided altogether. Face it, when it
comes to investment fraud victims, there is no justice. You will
never see your money again once the scammers have it. Thinking
that a lawyer will help you is almost like throwing good money
after bad. The scammers have teams of professional attorneys on
retainer for the sole purpose of keeping your money and keeping
out of jail. Your lawyer will get eaten for lunch while racking
up a high bill for you.
Despite all the talk of crime victim restitution, compensation
and the Victim Restitution Act the scammers will have hidden your
funds overseas and then claim to be bankrupt, despite living in
luxury and being able to afford high-priced lawyers even if they
are caught by the government authorities or regulatory commissions.
A victim of a stock scam, or investment
adviser / broker securities fraud who is seeking an accelerated
deduction for theft loss, or wants information or advice on the
tax treatment of a devastating unrecoverable fraud loss or how
to write off worthless stocks or bad
investments caused by broker misconduct, should review tax
benefit solutions in Section 165 of the income tax code then
contact a theft deduction specialist.
Victims of white-collar crime telemarketing fraud should also
consider theft deduction tax
relief which gives injured consumers and defrauded customers
an accelerated tax loss deduction when civil fraud loss recovery
is not an option.
This tax recovery method of using deductible
losses for a casualty or theft deduction may indirectly help
in recovering fraud losses caused by stock
scams, broker negligence, real
estate schemes, criminal appropriation, telemarketer
fraud, investment theft through a boiler
room, Internet fraud, the loss of embezzled
trust funds by a lawyer, financial adviser or bookkeeper,
money which has disappeared within an insolvent financial institution
or bankrupt business, all
through the accelerated tax benefits of this qualified tax deduction.
The most common types of investment
fraud which create losses high enough to warrant use of this
tax reduction method for scam victims are Ponzi
Yield Investment Offshore Prime Bank frauds, Boiler
Room Stock Scams, Commodity
and Forex foreign currency operations, Viatical
Insurance investment fraud, Abusive
Offshore Tax Shelter Schemes, and Nigerian
email scams which have progressed to a later stage of victimization
It is also not uncommon for criminal fraud victims of confidence
games such as psychic
theft and senior
and elder abuse cases to lose substantial unrecoverable sums
by false pretenses which may be considered for this form of deductible
theft loss tax treatment.
So cut your financial losses, get the tax break processed by professionals,
then get on with your life. Nothing is worth killing yourself for! Especially
not some scum-sucking stock-scamming sociopath.
misconduct, misrepresentation, embezzlement,
or broker negligence causes
his clients or customers to be defrauded, the monetary losses
of the financial fraud victim in the worthless
investment may be eligible for accelerated investment deductions.
A fraud victim seeking tax recovery, financial
restitution or an accelerated
tax deduction claim who does not wish to be audited by the
IRS or who requires tax advice or assistance during the arbitration
process or claim substantiation phase of this form of tax relief
should consider contacting a tax
recovery business which aids fraud victims who've been scammed
by a telemarketer or investment adviser.
When there is an intent to defraud, unethical behavior, investment
churning, unauthorized transactions, theft-like conduct, a breach
of fiduciary duties, or evidence of fraud by the investment
adviser, the tax
treatment of the investment theft for the American fraud victim
suffering a loss of capital needs to be be established with a theft
loss report using federal
IRS tax form 4684 which covers loss deduction for theft and
casualty losses of an unrecoverable loss under IRS tax code Section
While this procedure is somewhat complex, and limited to select
higher income victims, a theft
loss deduction may be of benefit to those in need of some solace
in their time of need.
Tax Relief May Help Recover Major Investment
Losses for Fraud Victims
So if you can't get crime victim compensation for stolen money
and need a tax deduction or accelerated tax depreciation for a
lost investment caused by misappropriation, outright theft, or
some bogus financial investment scheme offering that turned out
to be a total scam, then consider getting professional advice on
how to deduct the theft loss as an allowable capital loss tax claim
victim restitution solution.
Taxpayers may be able to deduct the full amount of the loss immediately
against ordinary earned income, all in one year. There is no limit
to a theft loss deduction, unlike the $3,000 annual capital loss
limit for regular investments.
A team of attorneys, CPAs and other financial experts works with the
client's tax advisor to determine if the loss qualifies and provides
the research and documentation required by the IRS. Preparing this report,
typically from 60 to 100 pages, is a time-consuming process. Many tax
professionals and Certified Fraud Examiners confidently outsource it
to our tax recovery experts on Section 165 of the IRS Federal income
That's not to say there aren't several common misconceptions about categorizing your §165(c)(2) theft loss under §165(c)(3) or that there aren't tax relief specialists who specialize in ripping you off with false promises and uncorroborated deductions that will come back to bite you in the ass, long after they are gone.
Excellent article on calculating theft loss deductions for investment fraud.
Why CPAs often overlook the deductibility of investment theft losses.
Victims were entitled to theft loss deductions for the year at issue for amounts they ascertained with reasonable certainty that they had no prospect of recovering.
Tax Breaks for Ponzi schemes victims.