By
Gary Scott
I have witnessed more scam tactics
during the past thirty years than I care to think about. One remarkable fact is
that even when potential suckers are told how they will be robbed, they still
invest! Protect yourself by reading the story below which explains why.
More Scam Tactics Story
Here are two more letters I just
received after writing about scams..
#1: "Gary, I have made MORE
than 10% per month over the course of a year in some of these investment clubs
and have been paid! Is it possible that some of them are legit? Thanks for keeping
us informed. Bob"
"#2: About your Scam alert that
you send us today, even if you don't seem to believe it, is it possible that some
investment could give this kind of returns (between 10 and 30 % a month)? I have
a friend that is telling me that he is making an average of about 15% a month
(I saw several checks). Confident of these returns, the same friend is been tempted
to invest in an other club (diversifying is his goal) who offers 20.5% a month.
By the way, I am not sure where this club is from."
More Scam Tactics Warning
Here is my reply to both these
letters, because they are just more scam tactics.
"I have so many scam stories
that I cannot give them all to you at once. Let me be clear. Most of these clubs
and similar schemes are Ponzi schemes. The con artists operating them pay out
money coming in from new investors to existing investors. The pay out is their
form of advertising! There are more scam tactics than you can imagine and the
big payout is just one. This works for awhile until the bubble bursts. The con
artists want to give you checks so you will talk to others about your huge profits.
Your friend may have received some checks. He may receive some more. If he is
lucky he may even get his money back before the thing collapses, but collapse
it will."
More Scam Tactics Story #2:
Here is my first scam story which
took place when I was working and living in Hong Kong. Two guys came into town
allegedly experts in trading commodities. They promised to make 15% to 20% per
month for their clients. They did-for awhile. One of my clients (his name was
Dwight) invested and nothing I could say would convince him that these guys could
not make that kind of profit again and again for a large group of investors.
Finally the Hong Kong fraud squad
investigated and investors became nervous. Dwight and a friend of his both asked
for their money back. Both received a check. They rushed to the bank and deposited
them. Dwight's friend's check went through. Dwight's check bounced. The two promoters
had fled and hundreds of investors lost millions. I'll add more of these stories
over upcoming months but the theme of each is the same. New unknowns come along
offering huge returns. Sometimes they are experts in commodities, other times
industrial wine (doesn't exist) other times discount groceries, etc. A few investors
get in and make huge returns. Many investors jump in and all make a bunch for
just a while. The second the deal slows down or is investigated, it collapses
leaving millions short.
Investors beware of more scam
tactics. New ones come all the time.
My novel the 65th Octave (details
on how to order are at the site) cover this. The hero is a scam catching expert
working for big banks. The book outlines why scams work and why suckers always
lose. I recommend you read the book. It has some in depth economic information
but is also a fast paced, fun read.
Order the 65th Octave
at GaryScott.com
Sometimes one
picture is worth a thousand words
To avoid scams balance
yourself in nature like this cabin at Gary and Merri Scott's Merrily
Farm where you are welcome to visit and stay Little
Horse Creek. |
