| By
Gary Scott
Let's thank Vince for getting
me on my phony scam investments soapbox! It saved a reader a fortune by warning
him about scams. Here is what he wrote:
"Thank you kindly for your
expedient response to my Email of 2-17-01. You have saved me a bundle. It's a
person like you and honesty that makes me keep on subscribing to your newsletters.
Thanks Again, Vince"
I thank Vince. It's so gratifying
to share experiences about phony scam investments that can really help! It's hard
enough making money in legitimate investments without worrying about phony scam
investments. That's why con artists and their phony scam investments make me mad.
They waste so much time and suck in so many unwary investors. Over the past thirty
years they have created a bad taste in my mouth, so perhaps I am entitled to rant
a little and rave (for your good). In fact the hero of my novel, the 65th
Octave, is an investigator who uncovers phony scam investments. Read this
book and you'll see why so many investors get skinned.
This message is mainly positive,
not just on phony scam investments but about three of the best investments in
the world, but first let me hasten to add a little more about phony scam investments
because I'm still getting readers who try to convince me that these cons are legitimate
deals. For example here is what one reader just wrote.
Phony Scam Investments Claim
#1:
"Gary, These so called investment
clubs which are prolific on the internet 99% of them are either ponzies or pyramid
games. However there seems to be one or two that are returning double digit returns
to investors (or club members) a business associate of mine has been involved
in these so called clubs for a number of years and has done very well out of them.
I myself have just recently joined a few of them really out of curiosity. The
ones I have joined are involved in a so called secret business namely bank debenture
trades. I myself don't believe they exist to the general public, but I guess nothing
ventured nothing gained. I look forward to reading your new book 65th Octave."
Phony Scam Investments Warning!
My reply to this reader applies
to all:
"Don't believe this! Smells
like rotten garbage. All of these phony scam investments are rip offs. Please
understand that these scams often pay out for a year or even two before they shut
down. One went on for twenty years! Here is a long true sad story that exhibits
the pain and suffering you can suffer and spread by investing in these clubs and
sucking other innocents into these phony scam investments by bragging about huge
profits. This actually happened to me in the early 1990s.
Phony Scam Investments Story
A client who had made a fortune
in the oil business was in his seventies and had retired. He invested into a Ponzi
scheme operated in Texas by a woman who claimed that because of here political
connections, gender and heritage she could qualify for all types of government
contracts. The deal was she got the contracts and financed them turning them over
to regular contractors to complete the job. He was getting ten to 12 % per month.
He told one of the speakers at a seminar I was conducting. That speaker told several
of the delegates (who were his friends). Some of the delegates asked me about
the deal. I was so outraged that the speaker had mentioned such a obvious scam
that I discussed it with the entire delegation and showed them five reasons why
I knew it was a scam. Yet I later learned that some of the delegates invested
in the deal anyway. The presentation was so convincing, the returns looked so
good. In fact one delegate who was an incredibly successful investor went with
his attorney and accountant to Texas to do their due diligence and invested one
million dollars one week before the FBI shut this Ponzi scheme down. The investor
(at the end of the scam) lost his entire million bucks!
Phony Scam Investments Story
Continues
But the worst is yet to come
because this businessman could afford to lose a million bucks. The original retired
oilman who introduced the scam in the first place lost his entire retirement savings,
plus his brother and most of his friends were wiped out, their lives ruined. The
speaker who spread the tale of greed further lost six figures as well. That was
bad enough, but he too could afford the loss. That speaker's mother whose entire
$475,000 of savings was lost could not afford the loss either.
So when greed gets the best of
you, think twice before you invest. Think three times before you brag about the
huge profits you are making. You may be at the end of the scam and suck a friend
or loved one into financial ruin.
Phony Scam Investments Question
to Ask
Ask yourself why you (without
any background in investing) can make 10% or 20% a month guaranteed when experienced
investment managers like myself or eClub advisor Steve Rosberg (Steve is conducting
an anti scam section at our forum) who have managed millions and hundreds of millions
can only find ways to safely make 6% or 7% guaranteed in today's economic environment?
How can this club outperform some of the best investors in the world (with far
better records than Steve or I have) who never even dream of making 240% a year
regularly?
Any investment manager who can
regularly make 20% per annum year in year out will be paid millions of dollars
a year by hundreds of fund management companies who would beg to have him or her.
Get Real!
Why Phony Scam Investments Work
Investors lose money for one
of two reasons. Their greed or fear outstrips their common sense. These scams
play on greed. Con artists irritate me to such a degree that the hero in my novel
the 65th Octave is a con investigator who works for major banks.
Another Phony Scam Investments
Concern
Greed and fear have also caused
some readers to be unhappy about the W9 overseas baking laws either. As one reader
wrote:
"Are you and all the bankers
and other offshore information and service providers hell-bent on committing business
suicide? Let me ask you a question. If there is no longer any advantage in going
offshore, why would anyone go offshore? Why would people want your information
and others' services? If people don't go offshore, where is your business, the
offshore banks' business, and even the offshore jurisdictions' business going
to go? Down the crapper, that's where. I tried, last year to generate some interest
in an organization to fight this. Response has been negligible and support has
been f**ing ZILCH. Of course, you don't have to worry -- you've made your stash
and can now afford to chase butterflies. But a lot of us don't yet have that luxury."
Phony Scam Investments Reply
Once again my reply is something
I want to share with all readers.
"Dear friend, I appreciate your
ire, but to focus it on me accomplishes nothing. Neither I nor the many banks
that are losing their privacy like what has happened.
"Would you prefer that I write
to you that there are advantages in places where there are not? Or would you prefer
that I share what I believe is true and correct? Killing the messenger never accomplishes
much except perhaps vents a little frustration that all of us feel.
"I started spreading my focus
away from just international advice years ago, but not just because of the loss
of privacy and tax benefits that used to be available that no longer are. I shifted
to inspired and ethical investing because I learned from dealing with investors
and business people for over 30 years that what is outside in the economy, the
world etc. is just a tiny part of wealth. Most wealth lies within the individual,
hence my focus deeper aspects of investing.
"Though many international tax
and privacy benefits have eroded, there are still numerous overseas asset protection
benefits. But the main benefit to investing and doing business globally has always
been the larger field of opportunity. My wealth has not accumulated a bit because
of privacy or tax protection abroad. All of my assets have been built from after-tax
dollars gained by spotting business and investment opportunity abroad.
"In fact the reason I have been
attacking these myths, scams and privacy losses is because too many people keep
looking at the wrong slant of international opportunity. They spend so much time
trying to protect assets they don't have or looking for ways to make a fortune
in one fell swoop that they never get around to really making any money. Focus
your attention on making money realistically, not on how to get rich quick or
avoid all tax. Being international lets us see more opportunities and let's us
spot distortions between one system and the other once in awhile, but is no panacea.
Good Investments Instead of Phony
Scam Investments
Here are three of the best investments
we will see in the years ahead. Direct your business activities into this area
instead of trying to cash in on phony scam investments.
The places where fortunes will
be made are in water, wood and air.
Learn more about this in the
ethical and green messages at this website and have good global investing!
Gary
My novel the 65th Octave looks
at scam protection issues. The hero is a scam catching expert who works 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. |
