Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Financial Fraud Interview
Old 01-17-2020, 05:30 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Dec 2016
Posts: 1,290
Financial Fraud Interview

Interview with Ben Carlson I found interesting:

https://www.thinkadvisor.com/2020/01...20200017132033


This really jumped out at me:


There are “six signs of financial fraud: When the money manager has custody of your assets; when there’s an aura of exclusivity in the pitch; when the strategy is too complicated to understand; and when the story is too good to be true,” you write. What’s the most glaring red flag?
The biggest one in terms of financial fraud is the custody of assets. That’s where people missed the boat with the Madoff scandal. Their assets weren’t held at a third-party bank or custodian. Madoff had control of the assets and was also making up the statements.
FREE866 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-17-2020, 09:27 PM   #2
Thinks s/he gets paid by the post
teejayevans's Avatar
 
Join Date: Sep 2006
Posts: 1,691
4...6...who’s counting? :-)
teejayevans is offline   Reply With Quote
Old 01-18-2020, 09:36 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2010
Posts: 5,830
In our area by far the two biggest reasons for financial fraud are..

1. Affinity fraud. Primarily faith based groups. Trust but no verify. Lambs to the slaughter. Huge losses-particularly with people in their mid/late 50's who have retirement nest eggs that have not done well in the recent past. They go anywhere from a $500M fraud by two former Pentacostal Pastors to the bankrupcy of the areas Lutheran Church Ass. and losses for seniors who invest on false pretences. Why on earth would people assume that these people knew anything about real estate/land investment yet they seemed to think because they were men of God that all would be well?

2. Incredibly unrealistic returns combined with the 'guaranteed' words. Why on earth would someone think that an investment that promises 15-30 percent returns be 'safe as houses'..like money in the bank.


You cannot fix stupid. Trust but verify.
brett is offline   Reply With Quote
Old 01-18-2020, 11:20 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 10,308
Quote:
Originally Posted by brett View Post
In our area by far the two biggest reasons for financial fraud are..

1. Affinity fraud. Primarily faith based groups. Trust but no verify. Lambs to the slaughter. Huge losses-particularly with people in their mid/late 50's who have retirement nest eggs that have not done well in the recent past. They go anywhere from a $500M fraud by two former Pentacostal Pastors to the bankrupcy of the areas Lutheran Church Ass. and losses for seniors who invest on false pretences. Why on earth would people assume that these people knew anything about real estate/land investment yet they seemed to think because they were men of God that all would be well?

2. Incredibly unrealistic returns combined with the 'guaranteed' words. Why on earth would someone think that an investment that promises 15-30 percent returns be 'safe as houses'..like money in the bank.


You cannot fix stupid. Trust but verify.
DW used to be quite active in the "elder" business including being an invited delegate to the White House Conference on Aging. The data she has says that the overwhelmingly most common financial abuse of elders is by relatives. This kind of abuse is substantially under-reported because the elder is ashamed and does not want to upset family relationships.

The schemes are wide ranging. Everything from pilferage and sale of valuable jewelry to using a legal power of attorney to raid the elder's assets. "Trust but verify" is a good mantra for any situation where one family member might be tempted by opportunity.
OldShooter is offline   Reply With Quote
Old 01-18-2020, 11:48 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Dec 2016
Posts: 1,290
Quote:
Originally Posted by OldShooter View Post
DW used to be quite active in the "elder" business including being an invited delegate to the White House Conference on Aging. The data she has says that the overwhelmingly most common financial abuse of elders is by relatives. This kind of abuse is substantially under-reported because the elder is ashamed and does not want to upset family relationships.
Wow

That is really sad
FREE866 is offline   Reply With Quote
Old 01-18-2020, 04:28 PM   #6
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,290
Quote:
Originally Posted by OldShooter View Post
DW used to be quite active in the "elder" business including being an invited delegate to the White House Conference on Aging. The data she has says that the overwhelmingly most common financial abuse of elders is by relatives. This kind of abuse is substantially under-reported because the elder is ashamed and does not want to upset family relationships.
My own experience doing fraud investigations corroborates that. I often wondered how many I didn't know about because they were never reported.
__________________
When I was a kid I wanted to be older. This is not what I expected.
Walt34 is offline   Reply With Quote
Old 01-18-2020, 08:15 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,204
Quote:
Originally Posted by OldShooter View Post
....Everything from pilferage and sale of valuable jewelry ...
When my great-aunt was moved into a nursing home, her POA was my aunt who lved over 1,000 miles away and as a result I got involved in her finances along with my aunt. Being a affluent single woman who appreciated such things, we knew that that my great-aunt had a lot of really nice jewelry pieces. However, according to her nephew, who lived near to her and was involved in her care until she went into the nursing home, the jewelry was all "missing"... my aunt and I suspect that they were missing in the nephew's wife's jewelry box.

Luckily, as it turned out when my aunt died by a fluke of luck we ended up with complete control of her finances and the evenutual settement of her estate. In her will she named certain female neices as heirs to certain pieces of jewelry (the missing)... since we had control, we paid money to each named heir in lieu of the missing jewelry and reduced the nephew's share of the residual estate accordingly. Payback's a bitch.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 01-18-2020, 08:47 PM   #8
Thinks s/he gets paid by the post
Souschef's Avatar
 
Join Date: Dec 2015
Location: Santa Paula
Posts: 4,067
Quote:
Originally Posted by pb4uski View Post
Luckily, as it turned out when my aunt died by a fluke of luck we ended up with complete control of her finances and the evenutual settement of her estate. In her will she named certain female neices as heirs to certain pieces of jewelry (the missing)... since we had control, we paid money to each named heir in lieu of the missing jewelry and reduced the nephew's share of the residual estate accordingly. Payback's a bitch.

pb, that is absolutely beautiful!!!
__________________
Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
Souschef is offline   Reply With Quote
Old 01-19-2020, 09:03 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
Send a message via Skype™ to kcowan
Quote:
Originally Posted by pb4uski View Post
When my great-aunt was moved into a nursing home, her POA was my aunt who lved over 1,000 miles away and as a result I got involved in her finances along with my aunt. Being a affluent single woman who appreciated such things, we knew that that my great-aunt had a lot of really nice jewelry pieces. However, according to her nephew, who lived near to her and was involved in her care until she went into the nursing home, the jewelry was all "missing"... my aunt and I suspect that they were missing in the nephew's wife's jewelry box.

Luckily, as it turned out when my aunt died by a fluke of luck we ended up with complete control of her finances and the evenutual settement of her estate. In her will she named certain female neices as heirs to certain pieces of jewelry (the missing)... since we had control, we paid money to each named heir in lieu of the missing jewelry and reduced the nephew's share of the residual estate accordingly. Payback's a bitch.
did you use the appraised value or an estate sale estimate?
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 01-19-2020, 09:33 AM   #10
Recycles dryer sheets
 
Join Date: Jul 2014
Posts: 153
Quote:
Originally Posted by pb4uski View Post
When my great-aunt was moved into a nursing home, her POA was my aunt who lved over 1,000 miles away and as a result I got involved in her finances along with my aunt. Being a affluent single woman who appreciated such things, we knew that that my great-aunt had a lot of really nice jewelry pieces. However, according to her nephew, who lived near to her and was involved in her care until she went into the nursing home, the jewelry was all "missing"... my aunt and I suspect that they were missing in the nephew's wife's jewelry box.

Luckily, as it turned out when my aunt died by a fluke of luck we ended up with complete control of her finances and the evenutual settement of her estate. In her will she named certain female neices as heirs to certain pieces of jewelry (the missing)... since we had control, we paid money to each named heir in lieu of the missing jewelry and reduced the nephew's share of the residual estate accordingly. Payback's a bitch.
Great for you, very well played, very right!
timemoveson is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Fight Financial Fraud With Tricks of Your Own obgyn65 FIRE and Money 34 05-14-2012 03:39 PM
Former Regulator: Clear Fraud in Financial Crisis -- Why Isn't Anyone in Jail? chinaco FIRE and Money 13 11-27-2008 06:09 AM
Warren Buffett interview, Financial Post, February 7, 2008 Meadbh FIRE and Money 5 02-09-2008 05:38 PM
Credit Card Fraud Indexter Other topics 13 06-19-2006 04:59 PM
Energy prices , Miracle Tech and Stock Fraud Lakewood90712 FIRE and Money 4 01-28-2006 10:29 AM

» Quick Links

 
All times are GMT -6. The time now is 01:12 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.