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Fraud - Investor Cons Increasing

By Steven Rodriguez

Bernie Madoff isn’t the only con artist stealing millions from gullible investors. Investment scams have increased since the economy tanked. Investors are looking for a quick way to recoup losses and con artists are only too happy to relieve them of their cash. Here’s how the top five scams work: Ponzi schemes lure investors with promises of high returns. Money from new investors is used to pay off early investors until the pyramid collapses. Most investors lose everything. Real estate investment cons promise high returns for flipping real estate. Investors lose when rehabs are never performed or property is located in undesirable locations. Investment/financial-adviser fraud occurs when an unscrupulous advisor takes advantage of a client’s lack of oversight...continue to full post

Full post as published by LA Criminal Defense Blog on August 17, 2009 (boomark / email).