A Ponzi of One

To spot a competent scamster you need to know more.

The defining characteristic of a Ponzi scheme, it is often said, is the use of money from later investors to pay supposed profit distributions to earlier investors. But the accurate definition is just a bit broader, as evidenced by a recent press release from the FBI: (more…)

The Imaginary $1 Billion Client

The investment advisory business is competitive and a certain level of AUM is necessary to pay the rent.

Would you sooner trust a registered investment adviser (RIA) who manages $10 million or an RIA who manages over $1 billion? Most investors would prefer the latter for valid reasons. RIAs know this and take pride in being able to report that their assets under management (AUM) is higher than it was last year. The SEC has obtained a judgment against an RIA who lied about her AUM to attract more clients. According to the SEC’s press release: (more…)

IW’s Crystal Ball Calls Another One

The American population is aging. In the past three years, millions of people who once identified themselves mainly as baby boomers, began identifying themselves as senior citizens. The development is too big to escape the attention of scamsters.

When we looked into the IW crystal ball searching for the types of scams that would plague the next generation of investors, healthcare scams were easy to see.  The American population is aging.  In the past three years, millions of people who once identified themselves mainly as baby boomers, began identifying themselves as senior citizens.  The development is too big to escape the attention of scamsters, who long for headlines and trends on which to hang an investment fraud.  The U.S. Securities and Exchange Commission (SEC) believes it has found one such fraud in Rhode Island. (more…)

professional wordpress themes