Why Investors Fall for Ponzi Schemes

Why Investors Fall for Ponzi Schemes

In the Madoff affair, there appeared to be a giant "Store Front Con". Anyone who has seen the film "The Sting" would understand. Only in Madoff's version, Madoff had a hugh department store. With a coterie of helpers, Madoff staged a "Grand Sting". With the help of his "coterie" and "Greedy Investers" ripped off mostly honest investers. The average invester has no idea how the markets work. And, as a result the invester has to put hie or her trust with the con man. In most cons the account manager and the account custodian are one and the same. This is clearly a sign of fraud or at the very least incompetence of the operators involved with your money. The best advice is to advise the operator that you intend to seek advice from the local DA or GA. If the operation is open and above board, the operators should not have any issues with your actions.

H J of PA @ Mar 13, 2009 13:07:10 PM