The new generation of scam artist knows that promises of ridiculous returns are a mark of an amateur scam artist. Scam artists who want to stay in business will promise returns only high enough to draw the interest of his victims.
Scam artists are opportunists. They sell what they think investors most want to buy. In the wake of the worldwide economic crisis and the decimation of 401k accounts, what people most want now is some sense of security and stability.
Please beware of any investment that involves a promissory note. The epidemic of scams that use them is raging.
Although McLeod defrauded federal law enforcement personnel, many of them trained investigators, his victims were not experienced in investigating investment scams. Relevant experience is everything. Only someone who had seen hundreds of scams could possibly have raised the alarm and saved the nest eggs that McLeod destroyed.
If, however, the person handling your nest egg spends like a trust fund baby on a weekend shopping bender, he is spending your money, not his own.
And therein lies one of the hallmarks of a dangerously savvy scam operator. If an investment sounds too good to be true, you are talking to an amateur scam artist. If it sounds reasonable, though, you might be talking to an experienced scam artist.
Let’s be honest. We are all susceptible to the Any-Friend-of-Bob’s Syndrome. It led many good investigators to loose their nest eggs in this case. As you read this it is leading thousands of people to put their life savings into the hands of someone who intends to steal it.
Scam Spotting 301 – Class #4
An RIA who announces to the world that he manages the finances of a certain celebrity client shows more concern for his own pocketbook than for the reasonable sensibilities of his clients.