Skip to comments.Fraud Alert (investments -- many "mini-Madoffs" out there)
Posted on 05/17/2010 9:35:35 PM PDT by SmartInsight
Scam artists increasingly are targeting people trying to repair their nest eggs. Here's what to watch for.
Many investors in their 50s and 60s are desperate to bulk up their nest eggs. But they remain skittish about the stock market -- and are frustrated with low interest rates.
And nearly half of investor complaints involve investment fraud targeting people age 60 and older, according to the North American Securities Administrators Association, based in Washington, D.C.
...She believed her money would go into a trust buying international securities, and she received a promissory note pledging a 5% monthly return for a year, she says. Instead, Ms. Cooper lost her money.
... Scams in which a company offers to buy and store gold for investors -- and to sell the material when it increases in value -- are also increasing, says Judith Shaw, Maine's securities administrator. The problem: "In many cases, the gold doesn't exist," she says.
(Excerpt) Read more at finance.yahoo.com ...
Beware of things that sound too good to be true.
Usually people who can least afford it are the ones falling for fruad, because they are desperate to make a little more return, and for an extra few percent of promised return, they jeopardize and frequently lose their entire nest egg.
A word to the wise...
crashing again...my head hurts.
5% a month?
WOman was an idiot.
OR, to be kinder, a fool.
And we know what happens to fools and their money.....
She was a GREEDY idiot!
Back in the mid 70s there was a bank in LAs Vegas (State chartered) IIRC, Silver State Bank - that offered 15% interest a year. THis at a time when larger banks offered 5% or so.
One of the big deals was that the bank had much of it’s reserve in silver - thier ads featured shots of the vault full of silver bars.
Then one day, folks found the bank closed, the vault cleaned out and the owner out of town.
THen the folks ‘discovered’ the bank was not part of the FDIC, so they were out. All went bawl-boohooing the TV reports.
I guess if you put all of your greedy eggs in one basket, you set your self up.
Anyway, good lesson for a young airman and one I have forgotten.
Thanks for the reply.