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The Family Reunion

At your family reunion, if there is one person who lost money in a Ponzi scheme, there is almost certainly another.  While Ponzi schemes are as different from one another as snowflakes, many cut a swath not just through a household, but through an entire extended family.
The reason is that Ponzi promoters are so effective at convincing early investors that the [...]

At your family reunion, if there is one person who lost money in a Ponzi scheme, there is almost certainly another.  While Ponzi schemes are as different from one another as snowflakes, many cut a swath not just through a household, but through an entire extended family.

The reason is that Ponzi promoters are so effective at convincing early investors that the scheme is legitimate that those investors often share the news of their good fortune with family members who then investment themselves.  Imagine that exchange at the family reunion after the scheme has collapsed.

It need not happen.  Investors who are willing to reject the scam promoter’s lie that confidentiality is a prerequisite to the investment can get the opinion of a former SEC Enforcement Branch Chief - someone who will be able look at the boilerplate offering documents and recognize the scam for what it is. 

Some family reunions are so big that there are people you don’t recognize.  You ask, and someone helps you out - “That’s Mary’s oldest boy.  He’s a doctor.”  Make sure they never say about you, “That’s _____.  He lost his rear in a Ponzi scheme and got Grandpa into it too.”

 

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