Saturday, December 27, 2008

Warning Signs For Investment Fraud Schemes

The Palm Beach Post published a handy Christmas-day list of warning signs for avoiding investment fraud schemes. The signs are as follows:
  • Warning sign No. 1: Consistent success.
  • Warning sign No. 2: Money managers who also act as brokers, and issue their own statements to clients.
  • Warning sign No. 3: Managers who use a one-size-fits-all investment strategy.
  • Warning sign No. 4: Your friend uses him, so he must be good.
  • Warning sign No 5: Your manager has put your entire nest egg under one chicken.
  • Warning sign No. 6: Your money manager's supposedly independent audit is done by the unknown Acme Auditors Inc., which has one employee, Wyle E. Coyote.
Read the whole article here.

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