In my work as a court-appointed receiver in cases involving securities fraud, I talk to several people each week who have lost their life savings to cleverly-disguised scams. These folks sometimes have to seek bankruptcy protection. Sometimes the money they lost was set aside to provide for an elderly parent, to send a child to college, or to fund their monthly living expenses. It is easy to blame the victim, and, sadly, many people do.
But, most of these people did their homework. They investigated; they went straight to the top and asked tough questions. Until recently, there was nothing more that anyone could do to vet an investment. Now, though, there is.
Investor’s Watchdog, a private investor protection company headed by a former Securities and Exchange Commission Enforcement Branch Chief, can investigate unregistered investments and give an opinion on whether the investment is legitimate. If IW judges the investment to be a scam, not only will IW inform its client, but also - with the client’s permission - will inform the SEC and/or state securities regulators. The company does something similar for investors trying to choose a stockbroker or investment adviser. Investor’s Watchdog can tell investors things about a prospective broker that no one else can, especially not the brokers’ trade group, FINRA. Investor’s Watchdog has helped its clients avoid brokers who appear trustworthy to the naked eye - as all brokers do - but are actually very dangerous.
As we all take our first steps into this unfamiliar and treacherous post-collapse landscape, those who know enough to ask can walk hand-in-hand with someone who knows where the danger lies and how to steer us away from it. Baby boomers and seniors trying to protect their nest eggs can now sleep more soundly, knowing that what has happened to the victims I described at the beginning of this post will not happen to them. And that is good news, indeed.
