If you're new here, you may want to subscribe to my RSS feed right now, before you forget, to get the latest posts. Thanks for visiting!

I just got finished helping a very nice woman deal with a horrible financial situation. It seems that last year she was approached by the husband of her cousin with an “Amazing Investment Offer”.

He said he was a registered investment advisor and that if she invested her money with him he could guarantee a 10% return for one year. This woman trusted her cousin, so she trusted the cousins husband as well.

The offer seemed so good that this woman also had her mother invest a cool $40,000, making the total investment between mother and daughter, $90,000.

Less than two months after making the investment the financial advisor went bankrupt and it subsequently came out that he was not registered.

Sadly there is probably little chance of recovering these lost funds and I advised her to find a lawyer and get an attorney going on this case since it sounded more like a criminal matter.

It always breaks my heart to see someone, anyone, lose money in a scam. Especially when it is all the money they have.

So the lesson to be learned here is if you are going to make an investment, make sure the funds are given or transmitted to a reputable company, rather than just the husband of a cousin.

Unfortunately, from what the woman said, it sounds like a standard PONZI scheme where the early players got money back to brag to others about how great the investment opportunity was. All the people investing latter get screwed.

-----

If you enjoyed this post be sure to grab the RSS feed or get posts by email so you don't miss a bit of what's to come.

Steve

Related Posts