Illegal Schemes & Scams Category

Bad advice damages investors, but it is not illegal. That is why it is so common. Then there are illegal scams, the most prominent being Ponzi schemes. These scams may be sold by unlicensed people who have nothing to do with the financial services industry. It pays to make sure you are talking to a licensed professional who has a clean compliance record.

By: DFreecloseAuthor: DFree Name: Debbie Freeman
Email: debbie@paladinregistry.com
Site: http://www.paladinregistry.com
About: See Authors Posts (14) | June 12, 2010 | Illegal Schemes & Scams

One way that ponzi scheme operators (aka slimeballs) operate is to prey on people they have close affiliations with. Some of the most commonly targeted groups include religious or community-based groups and the elderly. The con-artist will gain the trust of respected leaders within the affinity group (e.g., religious leaders) to help spread the message [...]

By: Matthew Arndt, CFA, CPA, CFP | January 22, 2010 | Illegal Schemes & Scams, Ponzi Schemes

The U.S. Securities and Exchange Commission alleges from 2007 through 2009, 51-year-old Steve W. Salutric a co-founder of investment advisery firm, Results One Financial in Elmhurst, IL, misappropriated several million dollars from his clients, one of which included a 96-year-old suffering from dementia.
According to the complaint, in addition to other crimes, Salutric embezzled over $400,000 [...]

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 17, 2009 | Deceptive Sales Practices, Illegal Schemes & Scams

The SEC charged two companies, including a financial planning firm, with conning senior citizens out of their retirement money when they made extraordinary claims about investing in a biotech startup.
According to the SEC complaint, advisory firm Speed of Wealth convinced more than 300 investors, many of them seniors, to liquidate their pension plans and invest [...]

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: Amy HerrickcloseAuthor: Amy Herrick Name: Amy Herrick
Member: Member Paladin
Quality Rating:
Email: rher86@aol.com
Site: http://paladinregistry.com/external/beaninformedinvestor/advisor_profile.php?advisor_id=1258
About: I have been in the financial services industry for over 23 years achieving the Chartered Financial Consultant (ChFC) and Investment Advisor Representative (IAR) designations. For the benefit of my clients, I am a licensed Life, Health, Critical Illness, Long Term Care and Disability Insurance Agent in multiple states. I believe in giving back to the community supporting ministries of the Light of The World Christian Center, Couple to Couple League, The Helping Hands of Goodwill Industries and other non-profit organizations on a local or global level Compliance Disclosure: Amy Rose Herrick, ChFC, Investment Adviser Representative is a Registered Representative of and offers Securities and Investment Advisory Services through Woodbury Financial Services, Inc., Member FINRA, SIPC and Registered Investment Adviser branch office 4536 SE 37th Street Topeka, KS 66605-9141 785-379-0586See Authors Posts (18) | October 29, 2009 | Illegal Schemes & Scams

An official looking email that is misleadingly indicating it came from FINRA promises potential victims up to $1.5M in compensation regardless of an individuals actual ARS investment.