The latest news of American immigration scam

The so-called Ponzi scheme is that the swindler designs an investment scheme without a business model and pays the early investors with the funds of the new investors until the scheme collapses.

Recently, many fraudsters are staring at those who feel that they have not made any money in the stock market surge in the past few years. These conspiracies failed because they were not as complicated as the biggest Ponzi scheme in the past 65,438+00 years. We are talking about the multibillion-dollar crimes of Bernard L. Madoff and R. allen Stanford.

These two companies went bankrupt in the financial crisis. The difference now is that Ponzi schemes are collapsing and financial markets are soaring. This worries lawyers and scholars who study Ponzi schemes, because when the market does fall back, this trend may only get worse.

Springer, who teaches at the Institute of Criminal Justice in john jay, new york, said that in the past ten years, more than 600 Ponzi schemes have been discovered, and she also wrote a new book, Politics of Ponzi Schemes: History, Theory and Policy.

When talking about Madoff's sentence, she said, "If he was sentenced to 150 years in prison, why would anyone launch a Ponzi scheme and think that he could get away with it?" Because they think they are smarter. "

Kathy Bazouan Phelps, a Los Angeles lawyer who runs a Ponzi scheme blog, says that she points out three to 10 new Ponzi schemes in her blog every month. She said, "Since Madoff, this trend has not even slowed down. Month after month, people come up with all kinds of ideas to cheat others of their money, which surprises me. "

These experts and others agree that what investors need to pay attention to now is Ponzi scheme, not the crazy fluctuation of individual stocks. A group has become the target of swindlers: relatively wealthy and well-connected investors, who are curious about new investments, but too busy to fully study them, or have expectations for stable high returns but hesitate.

No one contacts the Securities and Exchange Commission or the Justice Department when making money, "when they maintain very high profits," springer said. "They never said I earned too much. This must be a Ponzi scheme. When they lose money, they will contact the relevant departments. Or, if grandma dies and the money can't be returned, they will report it. "

When you think about it, Ponzi schemes always seem obvious. In the early 1920s, Charles Ponzi's stamp investment scam was certainly not the first one, but as we all know, it was regarded as his invention.

The picture shows Madoff.

Springer's book examines all kinds of scams, swindlers and victims, and analyzes how people have dealt with these scams from the economic and legal perspectives for decades. She stressed that anyone who invests in anything needs to know what is legal investment and what will arouse suspicion.

Springer said that in her research, she found that most Ponzi scheme planners started with friends and family, because this trust is innate. Followed by the chapel. This is partly because people have established contact with them. This is also because people are willing to believe that people they meet in places of worship have the same beliefs and values as them.

"We don't think they want to be used, because we don't use others," springer said.

She calls this phenomenon "I am just like this" syndrome, which applies to any affinity group, whether it is immigrant communities, country clubs or schools.

"In many cases, criminals of Ponzi schemes will use the money they earn to send their children to private schools," Ms. springer said. "There, they connect with other rich people."

She found that most conspirators are men, usually older, who can show a successful style. "Many people don't trust 28-year-olds," she said. "But age will make you look more credible."

Generally speaking, fraudsters have worked in their own industries, so they have a deep understanding of what they are doing. Lawyers, accountants and registered brokers can usually be found to manage the company.

She said, "In all Ponzi schemes, criminals are very pleasant people, people you want to be friends with."

So, how to judge which investments are worth worrying about and what security measures should be taken to avoid them?

The news topic about Ponzi scheme is ripe. At present, these scams may be about cryptocurrency, artificial intelligence and the treatment of coronavirus pneumonia-19.

"Uncertainty, financial crisis, turbulence and changing times encourage fraud," Phelps said. "This just describes the era in which we live. Liars use the latest news to exploit people. "

She has seen Ponzi schemes of some companies, which claim to have developed drugs to treat COVID-19.

"Beware of promises," Phelps said.

There are several effective ways to avoid being cheated, although it is also a bit time-consuming. This is why victims of Ponzi schemes skip due diligence and trust their friends. Many times, their friends know someone who claims to be a great investor.

The first step is to check the document. All Ponzi schemes have forged documents. In Stanford's $7 billion Ponzi scheme, the core involves certificates of deposit that seem safe but have unusually high returns. The company sent legal brokerage statements, including hundreds of actual stocks, even though each company has only one or two stocks.

Secondly, verify the qualifications of managers and question their statements. Springer said that she found that most Ponzi scheme planners donated money to political activities. "Then they can take photos with the candidates," she said. "You trust a man who looks successful."

Most importantly, make sure you know what the person who asks you for money is doing and why he wants you to invest. For example, fraud claiming to invest in artificial intelligence has become very popular because it is interesting, looks profitable and difficult to understand.

"Every time I see the word' patented algorithm', I think of fraud," Phelps said. Some people say that the artificial intelligence robots they use can generate a fixed return of 20%. If the rewards of artificial intelligence are so easy to produce, why do they want your money? "

You always get the promised payment from your investment, and then the investment plan is revealed to be a scam. You haven't escaped. When the scam collapses, the bankruptcy judge or the federal receiver may ask you to get your money back. At this time, it is meaningless to argue about not knowing what happened.

Pullman, the founder of Pullman Law Firm in San Antonio, said, "There is an ancient legal defense method for unsuspecting victims, which is often used. You whine, whimper and hum. This is what you can do. "

Pullman knows very well. In the past 1 1 year, he has been trying to recover the lost funds in the Stanford project. Pullman said that the US Supreme Court rejected their last appeal at the end of 2020, that is, directly suing one of the insurance brokerage companies.

"The only person who can make money is a lawyer," he said. "Investors can get a return of 5 to 6 cents for every 1 dollar."

However, some people will continue to be fooled. A few years ago, one of Pullman's clients said in his office that he got 1 10,000 dollars every month from his investment of 1 10,000 dollars. He introduced other investors when the people he provided funds were short of funds.

"I looked at him and said," Do you know this is a Ponzi scheme? Will you have no money one day? " Pullman said my client didn't want to believe me. I tried to explain to him the concept of recovery, that is, one day your people will file for bankruptcy, and the trustee will let you repay all the money he gave you. He just doesn't want to hear it. "

Pullman said that he has never heard from this customer since then. (Canadian and American finance)

# Scam #, # America #

Author: Feng

Editor: Feng