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Fraud Alert (investments -- many "mini-Madoffs" out there)
Wall Street Journal via Yahoo ^ | May17, 2010 | Kelly Greene

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 ...

TOPICS: Business/Economy; Crime/Corruption; Culture/Society
KEYWORDS: fraud; investments; retirement
They all sound solid, but they are not.

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...

1 posted on 05/17/2010 9:35:36 PM PDT by SmartInsight
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To: SmartInsight

crashing head hurts.

2 posted on 05/17/2010 9:40:27 PM PDT by dalebert
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To: berdie


3 posted on 05/17/2010 9:48:36 PM PDT by berdie (Hey, Bill Mahr...That's Mrs. Cracker to you.)
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To: SmartInsight

5% a month?

WOman was an idiot.

OR, to be kinder, a fool.

And we know what happens to fools and their money.....

4 posted on 05/17/2010 10:14:28 PM PDT by ASOC (Things are not always as they appear, ask the dog chasing the car)
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She was a GREEDY idiot!

5 posted on 05/18/2010 4:05:22 AM PDT by FES0844
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To: FES0844


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.

6 posted on 05/18/2010 7:45:07 AM PDT by ASOC (Things are not always as they appear, ask the dog chasing the car)
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