Con Artist's Tactics Exposed
Read a very interesting article in today's paper, taken from a New York based publication...
The NASD just released the results of a study done of victims of Investment Fraud. Some of the findings:
* Elderly victims of investment fraud are more likely to be male, married and have higher income.
* Con artists go after them with more than 1,100 different pitches appealing to their vulnerabilities.
* Investment fraud victims are more financially literate than non-victims.
* Fraud pitches are tailored to match the psychological needs of the victims.
* Investment fraud criminals use a variety of tactics, from friendship to fear and intimidation, to defraud victims.
* Investment fraud and lottery fraud victims are more likely to listen to sales pitches than non-victims.
* Fraud victims often have experienced more difficulties from negative life events than non-victims.
Unfortunately, AARP also participated in the study and will likely use this as a catalyst to further their own propaganda machine.
Also in today's paper appears this ad- which has run everyday for the past two weeks:
DO YOU HAVE A "DANGEROUS" IRA OR 401K?
In this advertisement are the claims:
-Qualified Retirement plans contain a HIDDEN TIME BOMB!
- The wrong kind of planning could FORCE you to pay back EVERY tax dollar you thought you saved during your 20 to 30 to 40 years funding!!!!
- If you don't know the kind of strategy and planning- you're throwing your wallet open to the IRS saying "HERE- TAKE ALL YOU WANT!"
- Not every financial advisor would share these retirement planning techiniques with you because they go against popular opinion!
- As a result of our stategies you'll be able to DOUBLE YOUR NET WORTH EVERY 8 YEARS!
Normally- this workshop costs $125-but if you call now you can attend FOR FREE! AND , THIS CROOK WILL EVEN BUY YOUR LUNCH!!!
You will leave his "Retire Smart Workshop changed for the better- HE GUARANTEES IT!"
We all come from different backgrounds and are sometimes quite passionate about the firms we represent, but we can all come together on this one.
When will the NASD and or State Insurance Commissions really do something to stop these con men?
I have seen material from this workshop. He is selling Equity Index Annuities. 15 year lock up. 4% upfront Bonus. Only 87.5% guaranteed Death Benefit.
My rep and I went to one of these guys seminars with a very educated client who kept getting invitations to go & asked us to go along.
It was kind of funny to be there - until the end of the seminar when the speaker recognized my Rep...."Hey -- You're XXX. Don't you work for Edward Jones?"
I'd encourage anyone else who has the time (and the huevos) to go, raise your hand, ask lots and lots of questions. "Who will I call when my account goes down?" "What does market cap mean?" "Do you have a license?" Then maybe stand outside and hand out your card....
Just think, if these scheisters can rake in people with their scare tactics -- good reps, offering good products, should be able to relatively well.