As an investment are letters of protection (lop) a safe investment?

Asked about 1 year ago - Lake Worth, FL

went to talk to a rep from gross financial services, and he said that this is a "safe investment".

any feedback would be helpful.

thank you

Attorney answers (3)

  1. Robert Edward Fenster

    Contributor Level 14

    1

    Lawyer agrees

    Best Answer
    chosen by asker

    Answered . I have been using LOPs for longer than 20 years. They are only as good as the case that generates them and the integrity of the lawyers who issues them. Be very, very careful here as you do not know the waters in which you are thinking about swimming.

  2. Robert V Cornish Jr.

    Contributor Level 16

    2

    Lawyers agree

    Answered . If you don't understand the investment, you shouldn't move forward. While these investments might be suitable for very wealthy individuals who are sophisticated enough to bear the risks, the great majority of people are likely not suitable for such an investment. You should also check to see if the firm and the agent are registered with FINRA on www.finra.org, using their BrokerCheck system.

    In any event, if you're seeking to make an investment of this nature, sit down with a financial planner in neighborhood or at a local bank. They should provide the guidance you need.

    The foregoing is not legal advice nor is it in any manner whatsoever meant to create or impute an attorney/client... more
  3. Michael S Hill

    Contributor Level 7

    Answered . There is always a risk of loss with any investment. Some have higher risks than others. Be very careful when considering investing money into or with something you are not familiar with or are being pitched aggressively to invest.

    Also, the manner in which an LOP is being offered to you may require many additional regulatory measures. Call my office 888-923-9223 or email me at mhill@menzerhill.com and I would be more than happy to review the materials given to you regarding an investment in LOPs.

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