I must say some of the best true crime cases grace the business pages of publications. This is one today in the Los Angeles Times. Because they are more complex and not nearly as heart rendering as the abducted child or murdered spouse they receive far less media attention, regardless of the damage they do. With most crimes, one person is hurt. With financial fraud or white collar crimes, dozens or even thousands of people fall prey to the greedy schemers.
With the economy in a downturn this is the time when many predators crawl out from their rocks. They realize that businesses are needy and try to shore up their accounts. They pitch co-ventures, partnerships and to prove their value pass counterfeit financial statements and work off of a phony Social Security Number.
For investors, they tell you how you can make a better percentage off your money, rather than the usual stocks, bonds and savings portfolios. They promise strong earnings, quickly. And then comes the Ponzi Scheme.
The Ponzi Scheme is named after Italian immigrant, Charles Ponzi, who came to America and victimized a good many of his fellows with his scam. It is also known as the Pyramid Scheme. What is it? Basically, they borrow from Peter to pay Paul. They take your money and pass some of it to another investor to make him think he is getting a sound return on his investment, as promised. And then the Ponzi Player takes someone else’s money and pays you. Until the entire pyramid comes crashing down, and then you see your wonder boy in handcuffs, gracing the business pages.
There are many variations on the Ponzi Scheme. There are many pitches. The scammers promise such hefty returns that people can’t resist. Time and again, they go for what they see as easy money. And then they join the long list of victims who file class action against the person or group who by now has spent all their money on a lush lifestyle and has little or nothing left to return. They are real tears that fall replete with the sad stories and sordid details.
Basically, if the pitch sounds too good to be true, it is. If the market allows for certain parameters for investment gains, then work with that. Nobody is giving you outrageous profits on what even at first seem to be feasible schemes. Look at it this way, if the proposal is that solid, they should be able to raise investment money by offering generous but not outrageous profits on your money. If it’s a shaky scheme, then your money may fly out the window.
Above all, check them out before you invest. Run the Social Security Trace and a criminal background check to make sure they are really who they say they are and that they haven’t spent time in jail for scamming before. Often they have. One comes to mind as I write this. He escaped the last round up, having had someone else be the front man. So he is out there, looking for a new group of patsies, I’m sure.
The comprehensive partner check is also a wise search, since it includes many civil records and shows property ownership and other stuff that may provide insight into the person you are about to do business with.
Above all, check them out, before you invest.
