Wisconsin Case Highlights the Limits of Perception

If you do more than set forth to confirm legitimacy, you’ll believe that you’ve done so, even as your money goes up in smoke.

“But I saw their tax returns!” At least one of the victims of the scam described below must have said this when he or she discovered that the investment was a fraud. But creating phony documents is as easy as a few mouse clicks; something any middle high schooler could do. According to the CFTCs release: (more…)

Former UGA Coach Accused of Operating a Ponzi Scheme

‘Expert’ analyses and saw-it-with-my-own-eyes observations are worthless until you have done so.

If you sell a car or a television on Craig’s List and the buyer isn’t happy, there isn’t much he or she can do.  You don’t need a license to sell your old car or your old television, and the damage is limited to the price of what you sold. If you are selling investments that meet the legal definition of a “security,” though, you have to have a license, because the damage you can do by selling securities can last for generations. (more…)

Friendly Neighborhood Insurance Agent Pleads Guilty to Running a Ponzi Scheme

As Glenn Frey wrote in Smuggler’s Blues, the lure of easy money has a “very strong appeal.” Often, we are just too close to see the red flags that would stand out to an objective observer.

We like to think that we can see a scam coming a mile away.  Too often, though, we find that it was standing right next to us as we scanned the horizon for it.  According to an article by John Diedrich of the Milwaukee Journal Sentinal: (more…)

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