Litigation

         
"Go ahead, I'll Take Your Pay!"  "Do U Feel Lucky Punk?" 

Accused scam artist Philip Barry purportedly told investors he was investing in stock options while instead allegedly splurging on personal real estate and a mail-order porn business, losing $40 million. Various news reports carried the arrest of  "Dirty Barry"  by the FBI, which was reportedly said that he bilked more than 800 people of their life savings, people who were retired and some who brought in cash.
 
I feel sorry for the afflicted investors to a degree. Am I angry about this. You bet I am!

Excuse me while I adjust my soap box...

Yet I continue to be amazed at the gullibility and flabbergasting stupidity of investors who, regardless of sophistication, should know better than to put "all their eggs in one basket".   I continue to be amazed to read about people who have the opportunity to work with qualified, licensed people, but they elect to work with dirt bags.  How were they supposed to know you say?

It seems when greed is involved common sense goes out the window. The picture of the now penniless adorn the New York tabloids.

Please consider...

1. If you are going to invest your life savings wouldn't a company called "The Leverage Group" at least raise your eyebrows?
2. Stock options are among the riskiest investments out there. Even if Barry was legitimate, putting all anyone's money in stock options is not an appropriate investment strategy. Leverage describes borrowing, which in investing can magnify both losses and gains.
3. When investors were kicking the tires at the  (New York Daily News described) "shag rug lined",  "shabby storefront in Bay Ridge" -- did they really have the impression that this was  class outfit? Did they ask for a prospectus?
4. Reports say that Investigators said that "Dirty Barry" also lied to investors claiming their money was insured through the Securities Investors Protection Corporation (SIPC). The bad news is that The Leverage Group was not a licensed brokerage so investors funds are not covered.

Does this low level hood doesn't even deserve the Madoff tag? The reviled Madoff was a master of his sleazy craft and deserves his own special place in infamy.

People you've got to check references, not just your friends (who might have been duped already). There are online resources available to show whether or not the person soliciting you is indeed licensed. You can check to see if there have been any complaints about the person. There are ways to check whether a firm is insured. DOCUMENT your files.

• You work hard for your money.
• If someone died for your inheritance THEY worked hard for your money
• Those who have exercised it should abandon blind faith when it comes to their money
• You should think smart with your money
• Do not invest with anyone who is not willing to take the time, or if you're beyond that, has not taken the time to conduct an interview to discuss your needs and gain a complete understanding of your situation.