Sunday, October 15, 2017
The Lawyer's Mailbox: THE LEAGUE OF EXTRAORDINARY SCAMS AND SCHEMES : A ...
The Lawyer's Mailbox: THE LEAGUE OF EXTRAORDINARY SCAMS AND SCHEMES : A ...: www.charlesjeromeware.com "Here to make a Difference." The following scams and schemes are extraordinarily popular and succe...
THE LEAGUE OF EXTRAORDINARY SCAMS AND SCHEMES : A PRIMER
www.charlesjeromeware.com "Here to make a Difference."
The following scams and schemes are extraordinarily popular and successful. My advice is that you be aware of them, and obviously try to avoid them. Generally, if you have been made an investment offer that sounds too good to be true, then it probably is too good to be true. Therefore, it is most likely a scam to steal your money.
PONZI/PYRAMID SCHEMES are always suspect. Long before the name-sake for these scams, Charles Ponzi, was born, they were popular in some form in Europe. Famous writer Charles Dickens even described a version of this lucrative scheme in his novel, Little Dorrit, published in 1857. Ponzi/pyramid scams have probably stolen more money from victims than any other type of scam. A reason for this is because early investors, who are paid with the assets of later investors, believe they have a great investment; therefore, they tell family, friends and associates about it. Consequently, this Ponzi schemer-manufactured phenomenon of excitement creates many more (new) investors who provide the new assets needed by the scam operators to meet the withdrawals being made of early investors. Eventually, this gravy train ends tragically for many later investors. Ponzi schemers, such as Bernard Madoff, can perpetuate themselves and their schemes for decades as long as there are no excessive demands for distribution [Chapter 7: "From Charles Ponzi to Bernard Madoff --- The 'Ponzi' and Other Investment Schemes", from the book, LEGAL CONSUMER TIPS AND SECRETS : Avoiding Debtors' Prison in the United States, by Charles Jerome Ware].
INVESTMENT SEMINARS are frequently scams because the only people making any money from these seminars are the people who are presenting the seminars. Most of these seminars promote "get rich quick" schemes, which almost never succeed for most people. Avoid them.
UNREGISTERED INVESTMENTS (bearer bonds, etc.) are a no-no. Unregistered financial documents may "look real", but a potential investor should not assume they are. Lawful financial security documents must be registered with the proper regulatory agencies. Clever criminals can easily copy legitimate financial documents and pawn them off as real. If they are not properly registered, they are not real.
ANNUITIES can frequently be scams when financial advisors replace investors' current annuities with inferior annuity products. This is done by the advisor so that he or she can generate new rounds of commissions from the investors' assets [ Source: Paladin Research & Registry].
INVESTING IN PRECIOUS METALS is another popular and age-old scam. It can be as exotic as the scams of trading securities or currency manipulation. Simply put, like other scams the alleged gold or silver bullion the investor believes he or she is buying may not even exist. It can be, in effect, another Ponzi scheme. One reason for this scam's success is that the schemers know that most investors will not bother to insist on visiting the company headquarters or location where the alleged bullion is claimed to be stored.
The following scams and schemes are extraordinarily popular and successful. My advice is that you be aware of them, and obviously try to avoid them. Generally, if you have been made an investment offer that sounds too good to be true, then it probably is too good to be true. Therefore, it is most likely a scam to steal your money.
PONZI/PYRAMID SCHEMES are always suspect. Long before the name-sake for these scams, Charles Ponzi, was born, they were popular in some form in Europe. Famous writer Charles Dickens even described a version of this lucrative scheme in his novel, Little Dorrit, published in 1857. Ponzi/pyramid scams have probably stolen more money from victims than any other type of scam. A reason for this is because early investors, who are paid with the assets of later investors, believe they have a great investment; therefore, they tell family, friends and associates about it. Consequently, this Ponzi schemer-manufactured phenomenon of excitement creates many more (new) investors who provide the new assets needed by the scam operators to meet the withdrawals being made of early investors. Eventually, this gravy train ends tragically for many later investors. Ponzi schemers, such as Bernard Madoff, can perpetuate themselves and their schemes for decades as long as there are no excessive demands for distribution [Chapter 7: "From Charles Ponzi to Bernard Madoff --- The 'Ponzi' and Other Investment Schemes", from the book, LEGAL CONSUMER TIPS AND SECRETS : Avoiding Debtors' Prison in the United States, by Charles Jerome Ware].
INVESTMENT SEMINARS are frequently scams because the only people making any money from these seminars are the people who are presenting the seminars. Most of these seminars promote "get rich quick" schemes, which almost never succeed for most people. Avoid them.
UNREGISTERED INVESTMENTS (bearer bonds, etc.) are a no-no. Unregistered financial documents may "look real", but a potential investor should not assume they are. Lawful financial security documents must be registered with the proper regulatory agencies. Clever criminals can easily copy legitimate financial documents and pawn them off as real. If they are not properly registered, they are not real.
ANNUITIES can frequently be scams when financial advisors replace investors' current annuities with inferior annuity products. This is done by the advisor so that he or she can generate new rounds of commissions from the investors' assets [ Source: Paladin Research & Registry].
INVESTING IN PRECIOUS METALS is another popular and age-old scam. It can be as exotic as the scams of trading securities or currency manipulation. Simply put, like other scams the alleged gold or silver bullion the investor believes he or she is buying may not even exist. It can be, in effect, another Ponzi scheme. One reason for this scam's success is that the schemers know that most investors will not bother to insist on visiting the company headquarters or location where the alleged bullion is claimed to be stored.
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