SparUnion – The supposed financial service provider SparUnion presents itself as a financial advisor on its website

You have invested with SparUnion and want your money back? The Herfurtner law firm will help you in case of difficulties.

SparUnion – Evaluation of investors

There are currently a very large number of providers such as SparUnion. As a result, investing in the volatile financial markets has never been as easy but also risky as it is today.

Precisely because there are a lot of opportunities, choosing an online broker can be time-consuming and daunting. Especially if you want it to meet your individual investment requirements.

Are you thinking about investing with SparUnion? Then the following aspects are important for you as an investor.

  • In the area of trading on the internet, you can use a variety of order types.
  • State-regulated online brokers, reputable portals, costs and commissions, offer options and feedback from customers are just a few of the features you need to take into account when making your final choice.
  • Access to international financial markets is becoming more convenient and lucrative for investors through online investing.
  • A good place to start for investors who want to learn about share certificates, futures, binary options and cryptocurrencies is a website like this one.

The following are basic suggestions for investors – regardless of the platform you invest in.

Checklist SparUnion: Check online brokers in advance

The following list serves as a safeguard against providers with dubious intentions.

  • Find out as much as possible about the trading company and the goods you want to buy (search engines on the net, forums, online card services).
  • Is there a complete imprint on the website?
  • Do not accept any unsolicited investment recommendations from strangers via advertising on the phone or e-mails.
  • Where is the company’s head office located?
  • Identity theft is a problem: Please do not hand over a photocopy of your photo ID. Criminals often ask you to do this.
  • Do not be deceived by assurances of excessive profits without the risk of losing funds.
  • Is a company like SparUnion listed in the company database of the specific EU supervisory authority?
  • Ask yourself: What is the name of the contact person I should get in touch with?

Does SparUnion contact you by fax?

Have you ever received investment offers by e-mail from a service provider like SparUnion that you are not familiar with? Do you receive faxes from the exchange that you have in no way requested? Or have you received an apparent “secret tip”?

Investors should beware of such tips, because they are often spread by unscrupulous groups and online brokers who want to make a profit by selling share certificates from an embellished success story.

Cases have also come to light in which consumers and buyers are contacted by an alleged stock exchange supervisory authority.

It is erroneously claimed that the people contacted have been the victims of a fraud and that the relevant data has been passed on to the stock exchange supervisory authority by the alleged Federal Public Prosecutor’s Office in Karlsruhe. The persons written to are expected to fill out a web form.

This is a clear attempt at fraud. We recommend under no circumstances contacting such a person or sharing personal data such as user names, passwords, credit card numbers or other identifying information such as your account data at SparUnion.

Ponzi scheme: how it works

A pyramid scheme, or Ponzi scheme, is a type of fraud. In it, assets are pooled from new investors and then used to distribute money to the former victims.

The masterminds of Ponzi schemes usually postulate that they would invest your assets and earn substantial returns without putting your capital at risk. All the same, in many Ponzi schemes, the fraudsters do not actually invest the capital they receive.

Instead, it is used to compensate people who paid in earlier. This way, the perpetrators can keep some of the money for themselves. So pay attention to the risk-reward ratio in all investments – including SparUnion.

Ponzi schemes require a constant inflow of fresh money to keep running, as they have low or no actual income. Many of these systems fail when it becomes complicated to generate fresh investors or when a considerable number of investors drop out.

If you want to invest with a service provider like SparUnion, you should always act with caution.

Among the clues you should look out for are:

  • Strategies that are hard to spot. Keep your assets out of the stock market if you don’t know enough about it.
  • Investments that are not registered with financial regulators. In most cases, Ponzi schemes are unregistered investments that are not controlled by official authorities such as Bafin.
  • Risk-free returns with little or no volatility. Every investment carries a certain risk, and the riskier an investment is, the more likely it is to yield a high return.
  • Selling without a licence: Investment professionals and firms must be licensed or registered under federal and state securities regulations. The vast majority of Ponzi schemes involve unlicensed people or firms.
  • Overly predictable outcomes. Over time, investments tend to rise and fall. Any investment of value that continually produces high returns detached from market conditions should be viewed with a high degree of suspicion.
  • Is there a problem with the documentation? If errors come to light on your account statement, it may be a clue that your money is not being invested properly.
  • Profits are not being paid out? If you do not receive any payments or find it difficult to cash out, you should be cautious. The operators of Ponzi schemes are probably trying to encourage participants to persevere by guaranteeing even higher profits if they do not withdraw money.

Recognising investment fraud in general

Would you like to invest with SparUnion? Then you should find out all the information you need about the company.

Investment fraud is a special form of fraud. The perpetrator promises or deceives a large group of people about a profitable capital investment on the capital market.

Capital investment fraud is sanctioned by a prison sentence of up to three years or a fine in accordance with section 264a of the Criminal Code.

The following services and tactics may be considered as capital investment fraud:

  • Investments in companies
  • Fraudsters use the brand name of the service provider SparUnion and clone the company
  • Boiler Room Scam, a cold-call solicitation for investors by telephone call
  • Unsolicited telephone advertising calls, so-called cold calling

Those who have fallen for investment scams have often invested a lot of money. What can you do in case of investment fraud?

  1. Claim damages: People who have been advised incorrectly can claim damages from the investment advisor.
  2. Involve the criminal police and the financial supervisory authority via a legal expert: There are collective police proceedings against certain fraudulent companies in the FRG and also in other countries. The police are entitled to have the criminals’ bank accounts blocked and the money seized. In addition, the public prosecutor’s office becomes active.
  3. Revoke or contest contracts: Affected persons who have concluded a contract can revoke or contest it in the case of investment fraud.
  4. Retrieve funds: If payments have been realised via credit card, this can be retrieved in many cases by appointing a law firm. In the case of bank transfers from the current account, this can in many cases be recovered by bank order.

Are the exit alternatives unresolved?

Clarify when and how much money will be paid out. Optimally, avoid long-term contracts that cannot be terminated early or where you would experience enormous monetary losses.

Conclude long-term contracts without the possibility of early termination exclusively with investment service providers such as SparUnion, whose reliability you have no doubts about.

Even if you have the option of waiving a contract at any time or terminating it over a specified period, you should be suspicious. Even if you have this protection, you may still be vulnerable to monetary losses. Make sure you know in detail how much money you will recover if the investment goes wrong.

The following rule applies to transactions in securities:

Before the end of the term, find out what options you have to get rid of shares.

It is usually crucial to be aware of whether there is a liquid market for products such as those offered by SparUnion.

It is possible to sell shares through a broker or a financial institution. All 3 methods are permitted for placing a sell order. The actual selling process is consequently completed via an exchange (e.g. Berlin, Stuttgart, Frankfurt, Tradegate or Xetra) (e.g. for penny stocks).

Order supplements can be used to direct the execution of the order from the outset. The share certificates are discharged at a time and place defined by you.

Get your investment back from SparUnion? Contact our lawyers

In order to be able to assess whether you have a claim for repayment against the financial services provider SparUnion, it is always necessary to assess the individual case. The lawyers of the Herfurtner law firm will do this for you as part of a free initial consultation.

The starting point for this assessment is always the facts of the case as described by you. In addition, parallels to similar cases can often be noted. You therefore benefit from the extensive experience of our lawyers.

After the entire evaluation of all documents and the legal classification, the approach is initially oriented against the provider SparUnion itself, should certain breaches of duty be verifiable. In order to be able to prove these breaches of duty, the contract papers, the e-mail communication and possibly other papers must be evaluated.

Furthermore, regulated online trading providers are also obliged to make and store telephone records of conversations with investors. The demand for the handing over of this documentation and the subsequent analysis is also an advisable and necessary step in the enforcement of your claims.

With the help of this evidence, the buyer’s claims can be enforced both in extrajudicial and judicial proceedings.

The financial institutions and crypto exchanges that are on the receiving end should also be brought into focus. Due to the fact that considerable sums of money are often involved, the question repeatedly arises as to whether the companies have complied with their duties to provide information and their obligations under the Money Laundering Act. A universal statement cannot be made in this regard; rather, the case of the individual must be considered.

The same applies to the beneficiary on the receiving side, who is usually not identical with the service provider itself. Under certain criteria, the beneficiary can also be held liable if breaches of duty can be proven.

After civil law options have been exhausted, criminal law proceedings remain if the suspicion of a criminal offence is substantiated. This requires contacting investigating authorities at home and abroad and coordinating further precautions.

In the meantime, many federal states have set up special departments for fraud offences in connection with online and crypto trading. The lawyers of the Herfurtner law firm are in regular contact with these departments.

It should not be forgotten that providers also provide helpful information on the domain holder. However, contacting the providers, who are often based abroad, is extremely complicated for someone who is inexperienced.

Financial supervisory authorities in Germany and abroad are also helpful contact points for investors who have suffered losses.

In addition to the complaint against the particular provider, which is intended to protect even more potential customers from financial investments, additional information can possibly be obtained through the financial supervisory authorities as a source of information.

These tips often make it possible to combine investigations in the FRG, Austria and Switzerland.