Bad Products & Services Category

Like everything else there are good investment products and there are bad investment products. For example, some mutual funds are rated five stars and some have no stars. Some products are investor-friendly and some make a lot of money for companies and advisors. Your key for growing your assets is to know the critical differences before you invest in them.

By: Matthew Arndt, CFA, CPA, CFP | November 27, 2009 | Bad Products & Services, Wall Street Ethics

Wells Fargo is ready to pay $1.4 Billion for its involvement in an Auction-Rate Securities scam. In an settlement that includes an arrangement with California Attorney General Jerry Brown, the San Francisco-based banker has agreed to repurchase billions in illiquid auction rate securities… “Wells Fargo convinced thousands of investors to purchase auction-rate securities with promises [...]

By: Jack WaymirecloseAuthor: Jack Waymire Name: Jack Waymire
Email: jack@paladinregistry.com
Site: http://paladinregistry.com
About: Jack writes for the InvestorWatchdog website and Worth magazine. He worked in the financial services industry from 1976 to 2004. For twenty of those years he was the president of a Registered Investment Advisory firm and a Broker/Dealer. Jack is the author of Who's Watching Your Money? The 17 Paladin Principles for Selecting a Financial Advisor and is a co-founder of PaladinRegistry.com.See Authors Posts (87) | November 9, 2009 | Bad Products & Services, Deceptive Sales Practices

How can investments be rated AAA one day and junk the next? When investment bankers pay substantial fees to rating agencies to obtain high quality ratings for garbage products. Moody’s, one of the biggest rating agencies in the U.S., has been accused of providing AAA ratings for subprime mortgage pools that were assembled and marketed by Goldman Sachs and [...]

By: Jack WaymirecloseAuthor: Jack Waymire Name: Jack Waymire
Email: jack@paladinregistry.com
Site: http://paladinregistry.com
About: Jack writes for the InvestorWatchdog website and Worth magazine. He worked in the financial services industry from 1976 to 2004. For twenty of those years he was the president of a Registered Investment Advisory firm and a Broker/Dealer. Jack is the author of Who's Watching Your Money? The 17 Paladin Principles for Selecting a Financial Advisor and is a co-founder of PaladinRegistry.com.See Authors Posts (87) | November 7, 2009 | Bad Products & Services, Deceptive Sales Practices, Illegal Schemes & Scams

In a fictitious scenario you attended a retirement planning seminar and met a person who reeked of respectability in his pinstripe suit, button down shirt, and wingtips. He was one of the most likeable people you had ever met and he immediately began asking you questions about your personal financial situation and your goals. You interpreted the questions as him taking a [...]

By: Evor VattuonecloseAuthor: Evor Vattuone Name: Evor Vattuone
Member: Member Paladin
Quality Rating:
Email: evor@aspire.biz
Site: http://paladinregistry.com/external/beaninformedinvestor/advisor_profile.php?advisor_id=2758
About: See Authors Posts (3) | November 5, 2009 | Bad Products & Services, Illegal Schemes & Scams

Using reverse mortgages to fund annuity premium payments has become an increasingly used scam by unscrupulous loan officers and annuity salespeople. Usually a reverse mortgage is for seniors who need the money for living expenses, not deferred annuity payments.
But, with the attraction of hefty commissions on annuity sales, there are a growing number of [...]

By: Jack WaymirecloseAuthor: Jack Waymire Name: Jack Waymire
Email: jack@paladinregistry.com
Site: http://paladinregistry.com
About: Jack writes for the InvestorWatchdog website and Worth magazine. He worked in the financial services industry from 1976 to 2004. For twenty of those years he was the president of a Registered Investment Advisory firm and a Broker/Dealer. Jack is the author of Who's Watching Your Money? The 17 Paladin Principles for Selecting a Financial Advisor and is a co-founder of PaladinRegistry.com.See Authors Posts (87) | November 1, 2009 | Bad Products & Services, Wall Street Ethics

Goldman Sachs, one of the most visible names on Wall Street, may have scammed investors when it sold $40 billion of securities that were backed by 200,000 high risk home mortgages.
A McClatchy newspaper investigation reported Goldman Sachs passed most of its potential mortgage losses on to unsuspecting investors when it sold them “subprime” mortgage-backed securities before the market was [...]

By: Jack WaymirecloseAuthor: Jack Waymire Name: Jack Waymire
Email: jack@paladinregistry.com
Site: http://paladinregistry.com
About: Jack writes for the InvestorWatchdog website and Worth magazine. He worked in the financial services industry from 1976 to 2004. For twenty of those years he was the president of a Registered Investment Advisory firm and a Broker/Dealer. Jack is the author of Who's Watching Your Money? The 17 Paladin Principles for Selecting a Financial Advisor and is a co-founder of PaladinRegistry.com.See Authors Posts (87) | August 30, 2009 | Bad Products & Services, Report Fraud

Criminals masquerade as financial advisors to sell illegal investment products. They use personalities, sales skills, and the names of legitimate companies to convince you to buy what they are selling. You can protect yourself from their predatory sales tactics by demanding proof they are licensed to sell investment products or advice.
Step one is to obtain [...]