The operator of $8.9 million dollar Ponzi scheme receives 131 month sentence. Think that this doesn’t happen around here? Think again, this was a recent sentence of a local Cincinnati man, conducting business in our own backyard. There were 72 local victims in this investment scam. How the scam worked was, early investors were paid interest payments which were not generated by investment earnings, but rather by monies solicited from later investors. This is a classic example of a ponzi scheme. BBB warns investors to watch for red flags before investing their retirement savings. A typical red flag is guaranteed above-market interest earnings. Always be sure to do your research before investing. Check your BBB for a list of Accredited Financial Planners.
Posted in: Alerts/Scams– January 2, 2013