Important Comments on Scams


Here are some valuable comments from readers and eClub advisors about scams. The first comes from eClub advisor Larry Grossman at larry.grossman@garyascott.com

Gary,

I have been reading with great interest your ongoing information about scams. As you know, I probably see on average at least 2 a week. One of the things that disturbs me even more, that you have not mentioned yet, is that several times I have talked to people and told them they were involved in a scam or a ponzi scheme and they have had the following response. “I know I am in one, but I am in early and consequently am getting paid and am likely to get a lot more then my money back.” Here is why this bothers me. The person knows they are in a scam and want to do it anyway. They know it is a Ponzi scheme, which means they know the only way they can be paid is with someone else’s money. This means they know somebody else is going to get ripped off so they can be paid. We are talking about pure greed in its highest, ugliest form. These people need to spend more time reading and understanding, “Inspired Investing”. And you know it does not matter if they call themselves Christian, Jewish, Buddhist, Muslim, an enlightened one, to the best of my knowledge, all world religions speak out against greed. Ultimately, these investors support and encourage scams and themselves become thieves. Sorry if this is hard stuff, but the truth often is.

Regards,

Larry

Here is my reply.

Larry, You could not be more correct. Another point that people forget is that they may have some liability doing this. In one Ponzi deal I observed a class action attorney sued the first people in the scheme on behalf of the last people who were left holding the empty bag saying exactly what you said. How would you like to get ripped off and then sued for it as well!

The next comment comes from a very savvy investor I have known for many years.

Gary: I’m enjoying the articles on scams. Having been a victim myself some 25 years ago I would offer some comments. One is that there are no legitimate returns of 10+% per month…NONE. People who do invest must be prepared to lose their principal, so whatever rate of return being promised is immaterial. Second, bear in mind that money needs to have more respect…it’s too hard to make and these kind of returns are disrespectful and eventually very damaging. I would urge that anyone currently invested make every effort to redeem their position and make it very high priority to do so! Remember: Greed blurs one’s vision!

My reply. I cannot agree more.

My friends, have good, carefully, thoughtful, socially productive global investing! remember the law of the universe is firm. For every action there is an opposite and equal reaction. If you make money at someone else’s expense it will come back to haunt someone!

Gary


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