What is a damage claim in investment fraud?
A damage claim is a legal demand for compensation for the damages you have suffered due to the unlawful actions of an investment company or its directors. In the case of investment fraud, this typically involves your initially invested amount (the investment loss), increased by statutory interest over the period you have lost your money, and any additional costs you can prove you have incurred.
The unique aspect of damage claims in investment fraud is that the fraudulent company itself often no longer has any recoverable assets — it is bankrupt, empty, or the money has been siphoned off. Therefore, the claim focuses not only on the company but precisely on the natural persons behind the company: the founders, directors, and other involved parties who can be held personally liable.
Who is the claim against?
Our damage claims target multiple levels. First of all, the directors who managed the investment company and who caused damage through their actions or omissions — via directors’ and officers’ liability. Furthermore, the founders who set up the fraudulent structure. And other involved parties who played a role in the unlawful actions, such as advisors, intermediaries, or managers who breached their duty of care.
The importance of evidence
A successful damage claim stands or falls with the quality of the evidence. It is not enough to say that you lost money — you must be able to prove that unlawful actions took place, by whom, and that your damage is the direct result of those actions. This is exactly why the forensic investigation by BFRG is so important.
Through thorough investigation, we gather the necessary evidence: financial flows that show where the money went, corporate structures that expose the mutual relationships, agreements and correspondence that prove unlawful acts, and financial analyses that substantiate the damages.
Legal framework
Damage claims in investment fraud are based on the doctrine of tort / unlawful act (Article 6:162 of the Dutch Civil Code) and directors’ liability. An unlawful act requires that there is an unlawful action (the fraud), attributability (the perpetrator knew or should have known they were acting wrongly), damages (your lost investment), and a causal link (without the fraud, you would not have invested).
