By: DFreecloseAuthor: DFree Name: Debbie Freeman
Email: debbie@paladinregistry.com
Site: http://www.paladinregistry.com
About: See Authors Posts (14) | June 19, 2010 | Ponzi Schemes

Here’s another sad but true story of investors who were taken to the cleaners by a ponzi operator. Giuseppe Viola is accused of running a ponzi in North Beach, a well known San Francisco neighborhood.

Like so many other ponzi operators, he promised investors returns of 20-25% on their investments, was a very good name dropper, and was very personable. What makes this case so tragic is that Viola had a criminal record (fraud) in Arizona and he also served time in jail for another fraud in the 80s’.

Had any of these investors requested documentation from Mr. Viola about his background, credentials, experience and business ethics, this could have been prevented. What would have been even better was if the investors has requested a background check on Mr. Viola. They would have learned much about him and hopefully would have made better decisions about their money.

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 to others about the investment scam. Unfortunately, the unsuspecting leaders who help spread the word have no idea that the investments are fraudulent and themselves become unwitting victims of the con-artist’s grand plan.

Don’t fall victim to one of these types of scams. Never entrust your money to someone simply because you like them. Get documented information about who you’re working with and make sure they are legitimate. Here are some red flags that you should be aware of before you take a leap of faith with your money.

By: DFreecloseAuthor: DFree Name: Debbie Freeman
Email: debbie@paladinregistry.com
Site: http://www.paladinregistry.com
About: See Authors Posts (14) | June 11, 2010 | The Politicians

Wow, it never ceases to amaze me how corrupt politicians can be. The Senate is moving to keep 401k expense fees hidden from participants. Poor investors continue to get the short end of the stick.

While the government tells us that much of the new legislation on the table for financial services reform is aimed at protecting consumers/investors, proposed changes like this one don’t seem to cater to investors. Quite the opposite, I’m afraid! For years, politicians from both parties have been in bed with lobbyists and special interest groups associated with the financial service industry. Lobbyists from the financial services industry have always been large contributors to politicians, so for the Senate to try and bury this should come as no surprise.

Kathy Kristof has provided a detailed look into this 401k fees issue.

By: DFreecloseAuthor: DFree Name: Debbie Freeman
Email: debbie@paladinregistry.com
Site: http://www.paladinregistry.com
About: See Authors Posts (14) | June 10, 2010 | Investor Information

Today the SEC charged six (four Canadians and two Florida men) with an alleged $300 million ponzi scheme.

Once again, the scam artists used a familiar tool to bring in investors…..yes, the free seminar. This seems to be one of the tricks of the trade for establishing ponzi schemes. Potential investors where promised 18% to 36% returns and all of the money was collateralized with gold.

By: DFreecloseAuthor: DFree Name: Debbie Freeman
Email: debbie@paladinregistry.com
Site: http://www.paladinregistry.com
About: See Authors Posts (14) | June 10, 2010 | Ponzi Schemes

A new ponzi scheme was just announced today in South Florida. This one focused on primarily on the hispanic community.

The con-artist used statements like: “no risk” investments, with returns of 10% to 120% paid in monthly interest payments.

Why do we post these articles? It’s our hope that we can help investors avoid making these types of mistakes in the future. Don’t get sucked into hype or a slick sales pitch. Listen to your gut and if something smells fishy, it probably is!

By: DFreecloseAuthor: DFree Name: Debbie Freeman
Email: debbie@paladinregistry.com
Site: http://www.paladinregistry.com
About: See Authors Posts (14) | June 10, 2010 | Ponzi Schemes

Here is yet another sad story of investors who listened to the wrong person and lost more than $86 million in a ponzi scheme. If the investors involved had raised these questions, disaster may have been averted:

1. Who is the person I’m going to work with? Am I relying solely on their reputation to make my investment decision? What is their background, experience, credentials, business practices?

2. Am I being greedy? Wow, a 17.5% return on investments seems too good to pass up.

3. Should I ask this person to supply me with any form of written documentation about this investment?

4. I wonder how this investment can continue to produce high (and steady) returns year after year, given the market conditions?

5. What’s the purpose of the “free lunch” seminar? What are they trying to sell me?