The U.K.’s Financial Services Authority (“FSA”) has discovered a list of prospective victims in a case involving schemes to sell shares of nonexistent companies. There are 38,000 names on the list. According to columnists from the UK’s Mail.co.uk, “This hit list consists of intended targets largely living in London and the south east but also with many names in Yorkshire and Lancashire.” Investors in those areas, beware. (more…)
A good way to protect yourself from the scam du jour is to remember the oath that witnesses in court have to take.
Regular readers of Investor’s Watchblog can finish the partial sentence that we’ve used to entitle this post. Gold prices are in the news, which means . . . that scam artists are going to begin offering gold scams. They will take various shapes. Some will offer shares in fictitious gold mining companies. Some will claim that they make profits through trading gold futures. Still others will claim that a non-commodity investment is secured by gold deposits. (more…)
Investor’s Watchdog’s CEO Pat Huddleston is scheduled to appear on Chicago’s Monsters and Money in the Morning on Friday, May 28, 2010.
Investor’s Watchdog’s CEO Pat Huddleston is scheduled to appear on Chicago’s Monsters and Money in the Morning, a popular morning show on CBS affiliate WBBM (Channel 2). On Friday, May 28, Pat will be talking about the future of investment fraud and practical tips for protecting your nest egg. Watchblog readers in the Chicago area, remember to tune in.
Investor’s Watchdog’s CEO Pat Huddleston is tweeting under the Twitter handle @Scamdemic. Follow him there for up-to-the-minute thoughts about the global scamdemic and tips on keeping your nest egg safe.
Investor’s Watchdog’s CEO Pat Huddleston is tweeting under the Twitter handle @Scamdemic. Follow him there for up-to-the-minute thoughts about the global scamdemic and tips on keeping your nest egg safe. http://twitter.com/Scamdemic
On Monday, April 26, 2010, Investor’s Watchdog CEO Pat Huddleston will be the featured guest on the Money Wise Guys radio program.
On Monday, April 26, 2010, Investor’s Watchdog CEO Pat Huddleston will be the featured guest on the Money Wise Guys radio program. Broadcast from AM1180KERN in Bakersfield, California, Money Wise Radio addresses a wide range of topics relevant to investors. The topic on the 26th will be how investment scams thrive in all environments, but especially when markets are on the rise. (more…)
FINRA members love to sell private placements for one reason: they pay huge commissions, far bigger commissions than stocks, bonds, or mutual funds.
The Financial Industry Regulatory Authority (“FINRA”) has issued Notice to Members 10-22, which reminds FINRA’s brokerage firm members of their obligation to “reasonably” investigate private placement offerings that they sell to their customers. Private placements are unregistered securities which are available only to wealthy investors. The mistaken assumption behind allowing the sale of these loosely regulated securities is that wealthy people are sophisticated enough to protect themselves from fraud. Yet, some studies suggest that more sophisticated investors are more likely to fall for a financial scam than investors with less financial experience. (more…)
On February 18, 2010,
in Investor Protection, New York, New York, Ponzi schemes, Scams,
by Investor's Watchblog
WIVB in Buffalo is reporting on the admission by “career criminal” Noah Schapiro running a $400,000 check-kiting and Ponzi scheme. The WIVB story states that Schapiro “has been convicted of financial crimes in the past,” but gives no details. No doubt the details are fresh in minds of his previous victims.
WIVB in Buffalo is reporting on the admission by “career criminal” Noah Schapiro running a $400,000 check-kiting and Ponzi scheme. The WIVB story states that Schapiro “has been convicted of financial crimes in the past,” but gives no details. No doubt the details are fresh in minds of his previous victims. (more…)
On February 15, 2010,
in Baby Boomers, Investor Protection, Investors at Risk, Senior Citizens,
by Investor's Watchblog
What makes Anitques Roadshow such a popular show on both sides of the pond? It is the idea that people may be holding onto seemingly worthless items of personal property that are really worth a fortune. If you have ever seen the show, you know that people come on the show to have their items appraised by [...]
What makes Anitques Roadshow such a popular show on both sides of the pond? It is the idea that people may be holding onto seemingly worthless items of personal property that are really worth a fortune. If you have ever seen the show, you know that people come on the show to have their items appraised by a knowledgeable, skilled appraiser. They realize that only someone with experience and training can tell the difference between Abraham Lincoln’s signature and a clever forgery. (more…)
On February 2, 2010,
in Investor Protection, Massachusetts, SEC, Scams, Securities Industry (general),
by Investor's Watchblog
The SEC has charged Medical Capital Holdings, Inc. (“MCH”) with fraud. Massachusetts Secretary of State has charged Securities America, Inc. with helping to sell MCH’s alleged fraud.
The SEC has charged Medical Capital Holdings, Inc. (“MCH”) with fraud. Massachusetts Secretary of State has charged Securities America, Inc. with helping to sell MCH’s alleged fraud. (more…)
On January 26, 2010,
in Investment Advisers, Investor Protection, Investors at Risk, SEC, Securities Industry (general),
by Investor's Watchblog
Registered investment advisers (RIAs) are different from stockbrokers; at least they are supposed to be. RIAs owe you a fiduciary duty, which means that they are supposed to put your interests first and disclose any possible conflicts of interest. But many investment advisers do not live up to that duty. The U.S. Securities and [...]
Registered investment advisers (RIAs) are different from stockbrokers; at least they are supposed to be. RIAs owe you a fiduciary duty, which means that they are supposed to put your interests first and disclose any possible conflicts of interest. But many investment advisers do not live up to that duty. The U.S. Securities and Exchange Commission has obtained judgments against two stockbrokers who paid bribes to investment advisers to induce them to use those stockbrokers in placing trades for their clients accounts. According to the SEC and U.S. District Judge P. Kevin Castel David Harrison Baker, Daniel Schrieber, and Schrieber’s firm, Granite Financial Group, paid bribes to two RIAs, Brian Travis and Nicholas Vulpis. According to the SEC’s complaint:
On January 25, 2010,
in Investor Protection, Investors at Risk, Pump and Dump, SEC, Scams, Securities Industry (general), Texas,
by Investor's Watchblog
The U.S. Securities and Exchange Commission has charged Summit Advisory Partners and its managing partner, Robert Feeback with directing an illegal pump and dump scheme. According to the SEC, the scheme allowed three stock promoters, Ryan Reynolds, Jason Wynn and Carlton Fleming, to make millions by purchasing shares cheap, hyping the companies with false press releases, and then selling [...]
The U.S. Securities and Exchange Commission has charged Summit Advisory Partners and its managing partner, Robert Feeback with directing an illegal pump and dump scheme. According to the SEC, the scheme allowed three stock promoters, Ryan Reynolds, Jason Wynn and Carlton Fleming, to make millions by purchasing shares cheap, hyping the companies with false press releases, and then selling to the public at inflated prices.
On January 22, 2010,
in Investor Protection, Investors at Risk, New York, SEC, Scams, Securities Industry (general),
by Investor's Watchblog
What do stockbrokers do when a regulator kicks them out of the securities industry? Oftentimes, they keep right on selling. The SEC has charged Bernard Daniel Braver with working for an unregistered investment company, Rabinovich & Associates, LP, operated by Alex Rabinovich, who the NASD tossed out of the industry years ago. The firm operated out [...]
What do stockbrokers do when a regulator kicks them out of the securities industry? Oftentimes, they keep right on selling. The SEC has charged Bernard Daniel Braver with working for an unregistered investment company, Rabinovich & Associates, LP, operated by Alex Rabinovich, who the NASD tossed out of the industry years ago. The firm operated out of a storefront boiler room in Brooklyn and raised more than $2.7 million from at least 169 investors, many of them elderly, through the sale of limited partnerships (“the Fund”).
On January 21, 2010,
in Investor Protection, Investors at Risk, Retirees, Scams, Serious Fraud Office, United Kingdom, United Kingdom,
by Investor's Watchblog
The island of Majorca is off the Mediteranean Coast of Spain. For many years it has been a favorite vacation spot for Brittons seeking sunshine and retirement. The UK’s Serious Fraud office has launched an investigation into a possible 20 million pound fraud that targeted British retirees living on the island. Specifically, the SFO believes [...]
The island of Majorca is off the Mediteranean Coast of Spain. For many years it has been a favorite vacation spot for Brittons seeking sunshine and retirement. The UK’s Serious Fraud office has launched an investigation into a possible 20 million pound fraud that targeted British retirees living on the island. Specifically, the SFO believes that John Hirst and his firm Gilher, Inc. “targeted British nationals and other expatriates” living on Majorca with a scheme that promised guaranteed returns.The Times of London described Hirst as follows:
Hirst, who ran the fund for seven years while living on the island, was a well-known figure in the expat community and was a keen cricketer. Most of his clients are thought to have been friends or social acquaintances. It is understood he has returned to Britain but has not contacted the authorities. He told investors he had been diagnosed with leukaemia.
That description is typical in three respects. First, notice that Hirst was well-known and socially active. Scam artists are big hits on the cocktail circuit. They are naturally gifted at engendering trust. You like them right away.Second, notice many of the alleged victims were friends or social acquaintances. Running a scam is all about establishing creditbility and trust. Those who consider you a friend are those most likely to believe that you would never betray their trust. They are therefore less likely to do a pre-investment investigation that might warn them away from the scam.Finally, notice the claim to have a deadly disease. Scam artists, when caught, often try to fake their own death or offer some reason why victims ought to pity them.Those who entrusted their money to Hirst are smart people. They worked hard and saved to afford a comfortable retirement. Yet, if the SFO finds a fraud, those people likely fell for it because they believed the one thing that all victims of financial scams believe — that it could never happen to them. If you want to protect what it took you so long to save, do what banks do when they move cash: hire private protection.
On January 21, 2010,
in Investment Advisers, Investor Protection, SEC, Scams, Securities Industry (general), Serious Fraud Office, United Kingdom,
by Investor's Watchblog
The United Kingdom’s Serious Fraud Office (“SFO”) has obtained convictions against five people who defrauded about 1.93 million pounds from 56 investors. Operating under the name Prudential Commercial Investments, the scam targeted retired British ex-pats all over the globe — from the Czech Republic to Malaysia, from Brazil to Pakistan. The scamsters told their victims that [...]
The United Kingdom’s Serious Fraud Office (“SFO”) has obtained convictions against five people who defrauded about 1.93 million pounds from 56 investors. Operating under the name Prudential Commercial Investments, the scam targeted retired British ex-pats all over the globe — from the Czech Republic to Malaysia, from Brazil to Pakistan. The scamsters told their victims that investments would go to make loans for the purchase of valuable commercial property. Instead, the scamsters wired the money off-shore and used it for their personal benefit. The men convicted in connection with the scam are Peter Roope (sentenced to four years and eight months due to an early plea), Gareth Matthews (sentenced to six years reduced to four years due to an early plea), Charles Frisby (sentenced to four years and six months), Douglas Miller (sentenced to three years and six months), and John Roope (sentenced to two years). (more…)
On January 20, 2010,
in Florida, Florida, Investor Protection, Investors at Risk, Ponzi schemes, SEC, Scams, Securities Industry (general),
by Investor's Watchblog
When I was in high school, I took a class called “On Death and Dying,” in which we studied Dr. Elizabeth Kubler-Ross’s book of the same name. Dr. Ross identified five distinct stages through which people pass after learning that their death is imminent. The first, and most stubborn, of those stages is Denial.Through 20 years of representing investors [...]
When I was in high school, I took a class called “On Death and Dying,” in which we studied Dr. Elizabeth Kubler-Ross’s book of the same name. Dr. Ross identified five distinct stages through which people pass after learning that their death is imminent. The first, and most stubborn, of those stages is Denial.Through 20 years of representing investors I have learned that the Five Stages of Grief apply equally to situations in which people lose their nest egg to an investment fraud. Denial is stubborn and scam artists know that. They are such astute students of human emotions and reactions that they often take advantage of the Denial stage to frustrate the SEC’s investigation of their scam. A case currently pending in Florida illustrates the point.Marian Morgan is in the federal detention center in Tampa charged with operation (with her husband) of a Ponzi scheme called Morgan European Holdings, which allegedly bilked more than 100 investors out of more than $10 million. She wants out of the detention center pending her trial. Emails she sent to investors before her arrest have become significant in the judge’s decision to leave her in the detention center for now.According to HeraldTribune.com reporter Michael Pollick, one of the emails that Morgan sent to investors represented that, if investors reported the scheme to authorities:
NO ONE will get one red cent. The powers that be will FREEZE all funds and years and years will go by before they ‘complete’ their investigation. When they are done they will CONFISCATE all funds as fees for their services and the participants will get one big GOOSE EGG, NADA, NOTHING, ZERO.
Scam artists often send message like this one. Oftentimes they work, with victims refusing to cooperate with the only authorities with the power to salvage any part of their nest egg. The resulting delay in completing the investigation allows the scam artists time to move money off-shore and/or to pay off squeaky-wheel investors, using money invested by other victims.The only way to avoid the Denial stage is to never fall for a cleverly-disguised scam. That means taking precautions like those banks take when they move cash. No bank asks a teller to throw $10 million in cash into the back of her Camry and drive it to a suburban branch. Instead, they hire private protection to ensure that the money stays in their possession. Smart investors are doing the same and have avoided the financial ruin that so many seniors are suffering through now.
On January 20, 2010,
in Investor Protection, Investors at Risk, Massachusetts, SEC, Scams, Securities Industry (general),
by Investor's Watchblog
Gregg Thomas Rennie was a stockbroker in Quincy, Massachusetts. According to prosecutors, he used that status to defraud his brokerage customers out of more than $3 million, by promising them a return of 12 percent per year through investment in fictitious “federal housing certificates.” According to prosecutors, Rennie targeted elderly investors, convincing them to [...]
Gregg Thomas Rennie was a stockbroker in Quincy, Massachusetts. According to prosecutors, he used that status to defraud his brokerage customers out of more than $3 million, by promising them a return of 12 percent per year through investment in fictitious “federal housing certificates.” According to prosecutors, Rennie targeted elderly investors, convincing them to cash in relatively safe investments in order to invest in Rennie’s scheme and using their money to pay his personal expenses.
On January 19, 2010,
in Florida, Florida, Hedge Funds, Investor Protection, Investors at Risk, Ponzi schemes, SEC, Scams, Securities Industry (general),
by Investor's Watchblog
We first blogged about Arthur Nadel’s hedge fund scam in January 2009, after Nadel followed the oft-followed course of financial scamsters who run when exposure is imminent. The U.S. Securities and Exchange Commission has now filed an enforcement action against two Florida-based investment advisers who worked with Nadel. The SEC charged Neil V. Moody and his son, Christopher D. Moody, [...]
We first blogged about Arthur Nadel’s hedge fund scam in January 2009, after Nadel followed the oft-followed course of financial scamsters who run when exposure is imminent. The U.S. Securities and Exchange Commission has now filed an enforcement action against two Florida-based investment advisers who worked with Nadel. The SEC charged Neil V. Moody and his son, Christopher D. Moody, with distributing client statements that materially overvalued the assets in the hedge funds. Those inaccurate statements lulled investors into believing that their nest eggs were safe and allowed Nadel of extend the scam far beyond the point at which it otherwise would have come to light.
On January 13, 2010,
in Investor Protection, Investors at Risk, Oil and Gas, SEC, Scams, Securities Industry (general),
by Investor's Watchblog
The U.S. Securities and Exchange Commission has charged Thomas A. Labry and his company Cherokee Gas Systems, Inc. with engaging in a fraudulent unregistered offering of investments in oil and gas. The SEC took emergency action to halt the offering and freeze the defendants’ assets.
The U.S. Securities and Exchange Commission has charged Thomas A. Labry and his company Cherokee Gas Systems, Inc. with engaging in a fraudulent unregistered offering of investments in oil and gas. The SEC took emergency action to halt the offering and freeze the defendants’ assets.
Videos
Wall Street Journal’s Kelly Greene Interviews IW CEO About Investor Protection
Kelly’s most recent article appears in today’s WSJ. She interviewed Pat Huddleston, Investor’s Watchdog’s CEO for that story, and recorded a podcast interview with Pat as a companion to the print story.
Kelly Greene fights the good fight for investors. As a reporter for the Wall Street Journal she covers topics relevant to retirees. In 2007, she wrote a best-selling book, The Wall Street Journal Complete Retirement Guidebook. Kelly’s most recent article appears in today’s WSJ. She interviewed Pat Huddleston, Investor’s Watchdog’s CEO for that story, and recorded a podcast interview with Pat as a companion to the print story.