Watch out for 'Investment Scams'

[sushi lover]

I got duped for a lot of $$$. Partly my fault for being greedy, but I should've known better

Its the 'invest' some money and just sit back and wait for the interest to roll in every couple of months. Im talkin' good rates - approx 25-35% annually.

Funny thing is that it was working for a couple of years. There was interest paid semi regularly....late payments here and there - and most of the interest was paid and the rest to come later (NOT).

Things were good while they lasted.....I've probably recouped about 50% of my initial 'investment' via interest payments.

Never asked what the money was used for....but the story I heard was - it was used to finance and invest in trading programs, venture capitalism and just plain lending (whatever that means).

I thought this 'scheme' was different b/c it was a friend who I had trusted (at the time) and thought I knew well. He was apparently doing this 'investment' thing for 5-6 years.....and you could tell he was doing well (now I know how).

The bottom line....one day all his numbers went dead - the house where he lived - nobody home. He had rented it. One day just quietly disappeared. Although I had a lot of $$ in this thing.....there were supposedly hundred's of others - and many of whom were deeper in than me - dare I even guess 7 figure's? Anyhow, its been a few months now...and Im just trying to get my life back in order, i.e. getting a job, getting a more economical car, get back into saving to get myself out of debt, etc....

Anyways, just a quick warning to dumb people like myself....if it sounds too gd to be true - then it is .....no and, if's or but's!

Work hard and save your $$ the old fashion way!

 

[Jim Rome]

Never asked what the money was used for....but the story I heard was - it was used to finance and invest in trading programs, venture capitalism and just plain lending (whatever that means).

Work hard and save your $$ the old fashion way!

Don't give up on investments, Dude, mutual funds, stock market or real estate. Your big mistake was you had no frickin clue where the money was being invested. Wrong. Fatal. Just look at it like going out to buy something, a house, a car, a set of golf clubs to prepare for the Leafs exiting round one, whatever .... hehehe .... research it !!!! .... put in the hours ..... know where the hell the money's going. I did exceptionally well in the dot.com boom and I was very selective. I always knew exactly what they were designing, who their customers were, the product's life cycle, their competitors and had a firm grip on the technology. You've got to put in the hours, Dude.

 

[drlove]

Sorry to hear that. Guess you just can't be too careful these days. Personally I deal with a broker from an established investment firm. However, sometimes even this can't protect you. For instance, a few months ago, an investment advisor from RBC was charged with mishandling clients monies/portfolios for personal gain. It sucks.

 

[gladheateher]

I got duped for a lot of $$$. Partly my fault for being greedy, but I should've known better

Its the 'invest' some money and just sit back and wait for the interest to roll in every couple of months. Im talkin' good rates - approx 25-35% annually.

Funny thing is that it was working for a couple of years. There was interest paid semi regularly....late payments here and there - and most of the interest was paid and the rest to come later (NOT).

sounds like a ponzi scheme, money from new people recruited into the scheme used to pay people already recruited.

 

[Gord's Bro]

Appreciate the warning. Rule of thumb seems to be: "If it's that good, why isn't EVERYONE raking in the money?"

Now if you want a real investment scheme, try the casino. Lots of fun, an occasional big hit but overall you don't get back what you spend.

But, heck, it's lots of fun trying . . . (and you're adding to the provincial coffers - big time!!)

G's B.

 

[mexicanbullfrog]

No one who is wealthy made all their money in a low-interest savings account.

The key to success is in taking informed risks on investments that have the potential to provide exceptional growth over time. You were not informed as to where your money was invested, and you paid the price. You were the victim of a con man.

The traits of a successful con man are similar to the traits of a successful sales person. The difference being that salespeople are representing a product or service which are real, and have merit, and they are awarded a commission on the sale of something you want. Con men put on a facade of the person they need to be to earn your trust completely in the moment as they fuck you out of your money with no benefit to yourself.

Watch Matchstick Men... con men look to feed off of the greedy, the old, the weak, the ugly etc.

Check your greed, and evalute each opportunity on its merits, based upon facts and figures which are verifiably true and accurate.

Invest in equity mutual funds that suit your needs, objectives, and style. Real Estate is also time proven to generate returns that beat inflation over time. Mutual funds are professionally managed, and Real Estate investing typically requires more hands-on management.

There is nothing wrong in putting a portion of your income aside in safe and secure savings accounts, GICs, and money market investments. The mix of cash, bonds, and equity is dependent on your tolerance for risk, which does change over time, so keep on top of your game.

 

[Moderator]

trust and money

Thing that drives me nuts about investing is how often I hear the phrase " I had no idea what he/she/it was doing"

Investing money is like driving a car, you need to be aware of what is happening at all times. I leave it to your imagination as to what happens when you don't pay attention.

If you're going to invest, be prepared to be an active participant!

 

[Shorty]

I'm sorry to hear about that. I believe you fell into one of those ponzi schemes.
I think it's better to trade by yourself online like ameritrade or td waterhouse. You'll get high return if you know what you're doing.

 

[xarir]

If it's too good to be true, it is. There isn't an investment out there than can consistently return 25%+ year after year after year. There are great investments to be sure, but nothing that good.

 

[mexicanbullfrog]

You need to invest in an SP. You're getting screwed in a way that's beneficial to you, and your return is pleasure.

You'll never get rich spending on whores, but you need something to drown you sorrows right now.

 

[sushi lover]

Thanks for the gestures and good advice....Your right I was too greedy - should've put in the hours to investigate 'exactly' where the money was going into.

It was a very expensive lesson for me. Im upset and disappointed, but I also realize it was my own doing for letting it happen.

What I forgot to mention was that ..... I also had people 'investing' through me.....I'd take a small cut, i.e. 1-2%. The money that Im personally out, was a large chunck (almost everything I was worth)....but its others peoples money that I need to pay back....and thats what I plan on doing asap.

I've started by selling my condo and cashing out all my non-locked in rsp's...which takes care of 75% of my debt.....Im hoping to get a new job in the next couple of weeks....doesn't pay a lot, but I'll put in my time and work up the corporate ladder 'again'.

Bottom line is im trying to stay positive.....no one in my circle of friends and family know about the money disappearing - and I intend to keep it that way. Im hoping I'll be back on my feet (broke but no debts) in 12-15 months - its gonna be rough

Next time I'll stick to equities, funds and real estate

 

[stang]

Nothing ventured, nothing gained.

I don't mind taking risks myself, you can't take it with you.
But just don't bet the farm.

 

[james t kirk]

sorry to hear about that, but one things for sure, you won't make that mistake again.

I agree with the other posters, nothing ventured, nothing gained.

But with all the discount brokerages out there and the information available on the internet, you could quite easily by stocks and MF's yourself. At least you know where your money is and how the stocks are performing.

Don't let it get you down.

 

[xarir]

Sorry to hear how rough it is sushi. You did report it to the cops right? This sounds like a perfect pyramid scheme. The rat bastards are probably out there trying the same scam on a different set of people; maybe the cops will be able to find them before it's too late. (Or maybe not. But it's worth a try no?)

 

[mexicanbullfrog]

What I forgot to mention was that ..... I also had people 'investing' through me.....I'd take a small cut, i.e. 1-2%. The money that Im personally out, was a large chunck (almost everything I was worth)....but its others peoples money that I need to pay back....and thats what I plan on doing asap.

I've started by selling my condo and cashing out all my non-locked in rsp's...which takes care of 75% of my debt.....Im hoping to get a new job in the next couple of weeks....doesn't pay a lot, but I'll put in my time and work up the corporate ladder 'again'.

It's very noble of you to pay back these other people. But would they have sold there house and everything they own to pay back you back? Especially a personal debt on an 'investment' that didn't have any guarantees of return or principal? Wait a minute... did you guarantee the principal? Jeez!!!!

You really hung yourself to a cross on this one.