Alabama Securities Division Scores Again

Very dangerous characters can hop from state to state, robbing hundreds of millions of dollars from thousands of investors.

If you aren’t in the securities business, state securities regulators will never cross your mind. If you think of a securities regulator at all, you’ll think of the U.S. Securities and Exchange Commission (SEC). Now, the SEC does excellent work — and could do even more if it were a self-funded agency — but it cannot police the industry all by itself. State securities regulators are an often overlooked part of the posse that hunts down and punishes investment scamsters. (more…)

The Ferrari Approach

One failure of traditional due diligence methods has been the assumption that all financial scamsters look alike.

I’ve often said that we could catch more Ponzi scamsters quicker if we routinely tracked purchasers of Ferraris, Bentleys, Aston Martins, and Maseratis and compared that list with those who make their living by raising money from investors. A certain type of financial scamster cannot resist the flashy car. Is this profiling? Sure. But it’ll work. Prosecutors in Alabama believe that they have found yet another scamster who proves it. According to al.com: (more…)

Former FBI Agent Pleads Guilty to Ponzi Charges

Too often we believe that people with a lot to lose (like a license to practice a profession) would never put it at risk. But they do.

You can imagine how soundly Cary Alan Burdette’s victims slept. They’d given their money to a man who was not only an attorney, but also a former Special Agent for the FBI. Certainly, their money was safe. Famous last thoughts. Last week Burdette pleaded guilty to operating a Ponzi scheme. According to al.com: (more…)

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