The SEC seems to be busy these days catching bad guys all across the United States trying to scam groups using Ponzi schemes. I don’t know if we are all, including the authorities, sensitized to these Madoff-type frauds but there sure seem to be a bunch of them.
This latest one preyed upon retirees in California and Illinois and their fears about retirement funding. The fraudsters lured in their victims to an ‘estate planning’ seminar and then, after gaining the retirees’ confidence would convince them to purchase promissory notes linked to what they termed “Turkish Eurobonds.” Needless to say no such investments were made and the fraudsters simply used the money to finance lavish lifestyles.
Be on the lookout for these deals that may sound too good to be true or are for investments that you have never heard of before. Always be wary of salesmen who try to push a quick investment because ‘this won’t last’ – almost always a sure sign of a scam.