by Michael Tarsala
It may be just a matter of time until we see another fraud of Bernie Madoff magnitude, says Pat Huddleston, author and former SEC enforcer.
Right now, Huddleston says, lower-profile, but similar scams are rampant.
Take the recent case of G3 Capital Management. Its owner pleaded guilty this week to derauding investors for more than a year. He promised 3 to 5% returns and delivering nothing.
“These people have learned from Bernie Madoff” Huddleston said. “They’ve learned that you don’t promise the moon. You promise something in the realm of possibility, and you can make your scam last one, two or three decades.”
Fraudsters also are tying their schemes to hot investment ideas. That’s why Kiplinger’s is warning of Facebook IPO frauds. One such scam reportedly took in $12.6 million.
The most recent conclusions from the Center for Retirement Research at Boston College are sobering:
- The FTC reports more than 1.5 million fraud complaints, up 62% in three years
- This trend will likely continue
- Consumers can best protect themselves by recognizing common fraud strategies
That’s why I asked Huddleston, author of The Vigilant Investor, about the most common frauds now making the rounds and how you can best protect yourself and your family. You can see the full interview below.
