QUESTION:

Not Your Stereotypical Target for Investment Scams

Thought I'd pass on a story of a lowlife preying on the elderly in guise of a financial advisor. Worse yet, he knew the law and purposefully avoided scams that would draw higher penalties - but the harm he did was not so discriminating. The original article can be found here: http://www.fortwayne.com/mld/journalgazette/15936390.htm

This article brought to mind a story I heard on NPR recently about an investment conman who was revealing the tricks of his trade. Of real interest, this conman profiled the individual most likely to fall for his schemes: a wealthy, financially sophisticated, college educated, small business owner in his 50s who manages much of his own investments. And most importantly, this person is willing to take a shot at quick cash schemes. Most often the 'marks' are brought into the scheme knowing it is illegal, because it helps keep them from reporting that they’d been conned – their ego and fear of prosecution keep their lips sealed.

Somehow I find satisfaction in knowing its not necessarily the elderly and naïve that get taken - its the all-to-clever too.

For your information, at NewRetirement we advise our users to seek references and check credentials of any financial advisor you plan to work with: see our article at http://www.newretirement.com/Services/Professional_Financial_Advisors_Choosing.aspx.
asked by Paul Lowrey, 2/12/2007
Categories: Financial Planning for Retirement, Estate Planning, Financial Advisors
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