Investor’s Watchdog’s experience has been that extravagant spending is . . . a reliable indicator of an investment adviser who is spending his clients’ money.
Protection begins with information. Find out as much as you can about the very impressive stockbroker or investment adviser who says he can help you reach your financial goals.
Scam artists do not feel constrained by the law. They are not the least bit intimidated by the prospect of a civil lawsuit or even criminal prosecution.
Managers who were in the habit of being able to report good news for so long might have been tempted to think that the market drop was only temporary and that, if they could monkey with things for just awhile, prices would rebound and everyone would be happy.
You put yourself at serious risk by believing that the person with designs on your nest egg will come off like a carnival huckster or a slick politician. He won’t. He will look and act much more like the neighbor with whom you most enjoy spending time.
For those who want to break into the scam industry, affinity fraud is the entry level position.
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.