Investment Fraud after Investment Fraud

Investment Fraud after Investment Fraud

So many thought all the investment frauds would have ended already. However more and more have come to light. One investment fraud which shocked me was Scott Rothstein who I knew from college. He ran a ponzi scheme to the tune of .2 Billion dollars. Scott Rothstein was a lawyer who donated a great deal of money to all types of charities with the guise he was an honest attorney. Rothstein hobnailed with successful business people, politicians and even Dan Marino. Scott Rothstein Ponzi scheme was based on selling settlements of lawsuits. Now Scott is looking at life in prison.. But worse off his investors lost millions and millions of dollars probably not recoverable. Another recent investment fraud is Thomas Petters. H has been convicted of running a .65 billion Ponzi scheme. Thomas Petters fraud involved selling bogus notes linked to consumer electronics sales which never actually happened. Investors in Petters Co. were told they were buying bulk electronics which were being resold to big-box retailers. Hedge funds and high net worth investors were taken in on this Ponzi scheme. Again Petters faces up to life in prison. The question is why are people so foolish? Was it greed or stupidity? Maybe these people were looking for a low risk avenue to generate positive returns? The reality is there is no free lunch in trading. Those who seek to avoid risk get further embroiled in it. So how does avoid these type of scams? I would suggest managed accounts. In a