Diversified Global Finance - Madoff III?!

What’s the problem? It sounds like you’re being set up to do some free consulting. Smart lady. 

If it gets another group of slimeballs off the street, I’ll do a little pro bono work.

[quote=Indyone]If it gets another group of slimeballs off the street, I’ll do a little pro bono work.[/quote]


Let’s call Dog Chapman to help us make a citizen’s arrest in New Zealand.

It says right on the website that they're not regulated, they're not a financial institution, and they have no relationship with any governmental office.  She's either willfully ignorant or too stupid for her own good.  It's not your problem.  You're better off not dealing with her at all going forward.  I'd inform her of the disclosure and wish her the best of luck.

Yeah, DK…I know I owe her nothing…especially when she left without even talking to me.  The other side of me feels sorry for someone who’s not very sophisticated about investments and was encouraged into this mess by her own brother.  If this is what I think it is (ponzi), future family reunions may be pretty tense.  I’m taking your advice, telling her why I’m concerned and referring her to the semi-local FBI financial crimes office to see what their opinion is.

Looks like these guys are part of the NZ company:

Thanks for that bit…I’m still just as confused about what these folks really are, but at least you solved the Grand Rapids connection.  I’m just shocked that David W. McQueen doesn’t turn up any results in FINRA’s broker check…

50k gets you a 12% cd for 5 years…wow

“Diversified Global Finance is not a licensed securities broker,
financial institution, or government agency; nor is it, or any of its
associates, affiliated with, or endorsed by, any financial institution,
government or government agency”.

"Term deposit accounts earn up to 10.25% APY. Special Offering &
Private placement 12%-18% or higher. Unlimited income potential. "

Makes me want to cancel my ING savings account!  Screw ~2%!!

The amazing thing is that other than their websites I can’t find ANYTHING about them posted anywhere else…at least not by using google.

Weird.

Maybe someone with more search savvy can help us out here…or maybe there really isn’t anyone else.

How in the world could someone give them money and not be suspicious of such high rates?

Here is the WhoIs information:

This is interesting, I googled the 3819 Rivertown Pkwy (Suite 300) address, and this is what I found:

PMB 200

That’s some great information you all have dug up and I appreciate all your efforts (especially yours, Hank).  I’ve sent a note to her explaining my concerns and advising her to call the FBI.  I’m going to share a few more of these posts so she can give the FBI a jumpstart in going after these bastards.  I hope these people get their money back, but if not, I guess it is a valuable lesson…

I think it’s a sad commentary on what people will fall for if only given the opportunity.  I guess the old addage that if it sounds too good to be true it probably is doesn’t apply any longer.  

Indyone, has she tried to remove her money? 

[quote=Spaceman Spiff]I think it’s a sad commentary on what people will fall for if only given the opportunity.  I guess the old addage that if it sounds too good to be true it probably is doesn’t apply any longer.  

Indyone, has she tried to remove her money? 

I think you have to leave your mind at least a little open to the possibility that they are in fact for real.  At least the New Zealand version.  Now the Pak Mail box version is certainly fishy, but the folk in NZ may be legit.  Of course, then that’s what Bernie’s clients would have said too.  I don’t think there’s any harm in letting her know that if she’s investing with anyone, it’s with this group out of NZ.  That’s a fun one.  Good luck with it.  Keep us posted.  

Yeah…if New Zealand has the same inflation as Iceland, it’s certainly possible that they would pay 12-18% on “CDs”, but if their currency is worthless, it might as well be fraud!  With all the warning signs, I don’t think any of this is for real, but I promise to let you know one way or the other if she shares with me…

So, let me get this straight…this person got 36% last year…and is getting 12% now…with these market conditions…and…there is a problem?  I would suggest they type their communications…but this seems really good to me!  Wish I had gotten 36% last year - that is for sure. 

[quote=John Simmons]So, let me get this straight…this person got 36% last year…and is getting 12% now…with these market conditions…and…there is a problem?  I would suggest they type their communications…but this seems really good to me!  Wish I had gotten 36% last year - that is for sure. 

if i was in your shoes, i would feel bad at first.  afterwards, i would have no remorse.  remember, she pulled the account from you without the courtesy as to an explanation. now she desperately needs your help.  she would have never contacted you again if things went great. from the info that you mentioned, it defiantely stands out as bogus.

UPDATE*

My bad, the Smart Retirement Concepts address is listed as Wachovia Securities.  Interesting?

My bad, the Smart Retirement Concepts address is listed as Wachovia Securities.  Interesting?

Is this what Markopolos was talking about when he mentioned unveiling numerous ponzi schemes?  Wasn’t that today? 

What a freakin’ mess!



How can these people live with themselves?

Scam huh?  How little you know.  Private equity happens to be what those with the money are smart enough to be looking for.  The real issue here is all the “planners” who think they know everything are crying and getting desperate.  The truth hurts. 

[quote=ibbledo]Scam huh?  How little you know.  Private equity happens to be what those with the money are smart enough to be looking for.  The real issue here is all the “planners” who think they know everything are crying and getting desperate.  The truth hurts. 

I wonder if your previous clients have any idea the way you could care less about them.  I think you better take a look in the mirror and get a different career! 

First of all, you need to have a certain level of net worth to make private equity a viable investment solution.



That’s not to say that there are not good private equity deals out there. The second issue is that “planners” have built a certain level of trust with their clients, while people like this are destroying that trust.



Planners are desperate? You bet, but only because crooks keep giving all financial professionals a bad name.



ibbledo - I hope for your sake you don’t think that private equity is the be-all end all for all your clients. I’d hate to see you on the news trying to ditch your plane or walking around with a house arrest anklet.



“This just in, financial wizard “iblledo” just dropped the soap in the shower and was attacked in the shower. In response to the crime, Bernie Madoff said, “That’s how it goes in here, we can’t stop screwing people””.

Ever notice how it's always the people that are pimping some bogus product that get all sensitive when people call them out on their garbage? My personal favorite is when they create like six accounts and chime in with different names to make them sound legitimate.

[quote=SometimesNowhere]Ever notice how it’s always the people that are pimping some bogus product that get all sensitive when people call them out on their garbage? My personal favorite is when they create like six accounts and chime in with different names to make them sound legitimate.

Hell, you can’t even guarantee that if you give your bank your money that they’ll return it to you at par. 

wow this is some crazy shit…

Here’s Madoff II: http://www.businessinsider.com/whistleblower-alleges-8-billion-fraud-at-sir-allen-stanfords-offshore-bank-2009-2#comments

Obviously, someone knows about “Guaranteed Rates of Return”

Hey.. If you are having trouble clicking on the link provided in last posting, please copy and paste the link into your web browser and it should take you directly to the link I was referring to... Thanks

[quote=Lady Of Truth]

Hey.. If you are having trouble clicking on the link provided in last posting, please copy and paste the link into your web browser and it should take you directly to the link I was referring to... Thanks

Sorry Everyone, seems that the previous link was having troubles so,  I have set up a link that should work now... Again, Obviously someone knows about "Guaranteed Rates of Return",  maybe we just need more education...

I’ll bite…educate me on how to get a guaranteed 12% rate of return.  You lay out the facts and we’ll see just how much there is to that claim.  Incidentally, the scenario I laid out at the beginning of this thread was not at all similar to using life insurance as an investment.

I especially like the professional website as well as the nice little invitation.  How awesome - please make sure I get to go to this and become educated. 

It’s amazing to me how many people kept their money with Madoff even after they suspected it was a Ponzi scheme, because they were making so much money.  And it sounds like her brother parked a million with these clowns without doing the due diligence FIRST, in hiring an attorney to find out exactly where his money was going.

I have a question, though:  we are licensed financial advisors.  Isn’t it OUR obligation to notify the FBI when these suspicions arise?  We don’t need to have an account there to pick up the phone, do we?  Were I you, I would take what I know and call the SEC, right now.  I don’t know what your liability is if you say nothing, but I wouldn’t want to take the change.  And I would tell the client, from what you’ve said and from doing private research, I’ve notified the state and federal authorities that I suspect these investments are fraudulent.  What she does after that is up to her.

According to one of the earlier posts, it appears that the SEC is already investigating these clowns, and I did everything but call the FBI for this lady.  I gave her phone numbers for both local field offices and urged her to call them.  I haven’t heard back from her (I’m guessing she’s either too embarrassed or still in denial), but I documented my efforts, even though I feel like I owe her very little at this point, since she’s a former client.  At some point, if I hear no more from her, I’ll probably call her just to see what’s going on…what a sad mess.

is she hot?

[quote=Bodysurf]I have a question, though:  we are licensed financial advisors.  Isn’t it OUR obligation to notify the FBI when these suspicions arise?  We don’t need to have an account there to pick up the phone, do we? [/quote]

I lost a $2 million account to Stanford. The point here is that when the client decided to make the change, the client wouldn’t/couldn’t explain the investment process that he was being offered by them. All he kept saying was that he was offered a “CD” that yielded about the same as the historical returns of the market without the volatility of the market. I was as much in the dark about Stanford as the client. How was I expected to support an accusation of wrong-doing? If I had more insight into what they were doing, well then I would blown the whistle.

Moreover, even when Markopolous (?) had more substantive accusations against Madoff, the authorities did nothing about it for 8 years.

is she hot?

Why don’t you just get an appointment with Mr. Mcqueen? I did. We sat down & went through a tough Q & A. His answers were good with me. My Father-in-law created a self directed IRA through Smart Retirement Concepts, & is invested with Diversified Global Finance. He now enjoys a check every month for 1% of his account balance, (like clockwork). This may come as a shock to some, but the “ultra rich” of America don’t buy mutual funds at all! So what do they do? They pursue private investment opportunities out there. They play a different game than the “average Joe”. Their game works, & the “av. Joe’s” game doesn’t. (The rich get richer) You’re free to invest with this co. if you want to. You’ll get 12% like my Father-in-law. Or you can keep on doing what you’ve always done, & go down with the ship! Do some real homework before you make snap judgements just because you’re angry about losing a client. Or angry about not being able to compete. Look, I was at a meeting in Michigan late last yr., where the company had all of their clients come in for one of 3 meeting times. There were around 30, or so at the one I attended. I was able to take some time to talk to several in attendance. These people were some of the most savey investors I’ve ever had the opportunity to talk to. The caliber of these people were top notch. (Business owners, CEOs, Doctors, ect.) That only made me feel better about the entire situation. So, it is what it is. My Father-in-law is comfortable with it, & so am I. I’m betting that lady who left you is too, & that’s why she hasn’t called you back. Not being rude, just keeping it real.

^^^ You guys are so dumb that you don’t even realize that you’re digging your grave even deeper by posting on these forums!

No need for name calling. I’m just saying how the experience has been in our family. Simple as that.

right. 

Has anyone passed on information about these guys(and their apparent postings) to the proper authorities?

No need for name calling. I’m just saying how the experience has been in our family. Simple as that.

At first, I couldn’t find anything on google, or any other search engine about them. My father-in-law called me this morning to tell me about this site. That’s what got my curiosity peaked. So I logged on to throw my “2 cents” out there. He does searches every now & then, & finally saw something to click on. I don’t even think their web site comes up on search. Just wanted to post our experience. If you don’t believe me, then get your contact info to me, & I’ll be glad to get you a meeting with my father-in-law, & you can see what he has. (paperwork, statements, ect.) I don’t think he’d have a problem with it. I’m not on here as a “financial advisor”. Just wanted to give some fact from our consumer point of view. Hope that helps. Again,… not trying to be rude. Just telling our story.

I’m not here to get into some kind of argument with anyone, & I’m not going to be calling you names. Just drop it. If you don’t want to like my input, then don’t. 

The problem, golfnut, is that almost every investment product sold to U.S. consumers has to be regulated by some authority.  DGF and their “investments” do not seem to be regulated by FINRA, the SEC, the NYSE, or any other governing authority.

What is scarier, investing in the stock market, or investing in just about “anything” out there? I’m no professional adviser, but I pulled my stuff out of the market when it was at 12000. My 401(k) is still at it’s value at the time I went safe, while most of my co-workers are down 50%, or more! Seriously speaking,… why did their guy tell them to “Just hold tight, it’ll come back. It always does”. I don’t understand that at all. I thought we were supposed to “sell high” & “buy low”. It’s all really frustrating to me. I don’t understand it, but I followed my gut, & was right in doing so. As for my Father-in-law, he followed his gut too. I understand that following one’s gut can sometimes turn out to be a really bad idea, but we all make choices, & have to live with them,… good, or bad.  Look, I’m just a working man who can’t debate you on this stuff. I know nothing about who regulates what, & all that. I’ll try to learn more, because it really is interesting to me, but being that this is a forum for professional advisers, I’ll make this my last post because I don’t think I’m wanted here due to a previous comment. I Didn’t mean to cause any trouble with you all, & if I did,… I apologize. I’ve said my peace. I work midnights, so it’s time for me to go to work. I wish you all the best, & really hope you’ll be a positive light in these tough times. God Bless.

[quote=iceco1d]By the way, since we already had a “Madoff II” perhaps we should rename this thread “Madoff III” just for good measure?

[quote=iceco1d]By the way, since we already had a “Madoff II” perhaps we should rename this thread “Madoff III” just for good measure?

[quote=iceco1d]By the way, since we already had a “Madoff II” perhaps we should rename this thread “Madoff III” just for good measure?

I say give golfnut772 a break,  he doesn't know what he doesn't know.  Instead of railing on the guy we should have been trying to show him the light of the darkness he is in.  He shouldn't have come on here saying that rich people invest into things normal people don't.  Private placement could me in a penthouse in midtown or a condo in Aspen or $60mm placed privately into his wifes accounts.  If he isn't part of the problem, he has a big problem.  He should have come on asking "is this for real, that Madoff thing got me a little scared", he didn't but hopefully he learned somthing.  Golfnut if you are listening it's time to do a little more due diligence.  If I were you I'd be scared sh*tless right now.  Best of luck to you!

::bump:: hey golfnut got any updates for us?  Anyone else?

[quote=golfnut7772]I’m not on here as a “financial advisor”. Just wanted to give some fact from our consumer point of view. Hope that helps. Again,… not trying to be rude. Just telling our story.
[/quote]

This forum is for financial advisors, registered reps and insurance agents who are licensed to deal with the public on these matters.

This forum is NOT for the public (aka. the clueless).

Why licensing?  So you can be held LIABLE in arbitration for your recommendations.

Your story is the sad story before it becomes sad.  The fact that you believe his propaganda, statements, etc., shows that you don’t know “sh*t from shinola”.  (Google THAT and learn something!)

I noticed today that the website I posted now indicates that it is “under construction” and says “We are upgrading our website to serve you better.”  Perhaps they should replace “serve” with “screw”.  It also now has a member login that prevents me from browsing through the website.

Whoops, google cache: http://209.85.173.132/search?q=cache:VmaTe-zjW_sJ:diversifiedglobalfinance.com.pa/tda.php+http://www.diversifiedglobalfinance.com.pa/&cd=5&hl=en&ct=clnk&gl=us&client=firefox-a

Also, I saved a copy of the webpage in case anyone needs it for evidence. 

Man, it’s great having an army of cyber-sleuths on your side…thanks, guys…

The sad reality is that con artists know all to well the power of greed. There is a reason why we still get emails asking for help in recovering untold millions in Nigeria, or the latest pink sheet stock which will revolutionize the entire world. The fact is that people still fall for these scams, no matter how many times they have been warned. Reasonable people, who normally make rational decisions are reduced to fools by chasing a dream. The thieves just get more clever each time, either their pitch, their target, or how they cover their tracks. But in the end, the result is the same, all the money is lost. And even more sad is that many of these investors will cry for justice and/or sympathy when they realize their retirement fund has disappeared.

As for the people who have posted here defending the company, it is not surprising. Do a search for Diversified Global Finance, and you will find this forum. I would bet that it is company insiders trying to use every opportunity to defend and promote their brand. It is the same practice used by stock promoters on investment forums when they are pushing a penny stock pump and dump.

So what is the latest on these crooks?

I’ve heard nothing else recently.  My assumption is that my former client is in denial about her $$$ being gone and would much rather believe those pathetic “statements” she is receiving.  IMO, it’s just a matter of “when” DGF collapses.

Watched a thing last night about Madoff.  You could not believe the statements they generated!  I would have believed them also.  You would have to be paying very close attention as an investor to detect anything was wrong.

The real problem comes when scams like this come to light, and it makes it much more difficult for legitimate advisors to prospect. I have found people much less willing to have a conversation through cold calling, which is how I have built my business so far. I had a client call me yesterday to buy a stock based on a fax sent to his work. He was convinced this was set to go through the roof. A legitimate advisor can't get people to talk, but they will act in an instant on an obvious scam.

it’s been months since the latest activity on this board, but I thought you might want to know, the latest chatter is this group has been caught by appropriate authorities it’s up to the government from here on out, but the masterminds behind this devious scheme are either caught, or hiding in friends/family’s homes running wall to wall like drowning rats.



i don’t normally take pleasure in the problems of other people, but once i learned how this operation worked, I’m glad to see it fall apart! I thought you all would like to know! good luck to any people affected by these sociopaths.

[quote=webguy411] it’s been months since the latest activity on this board, but I thought you might want to know, the latest chatter is this group has been caught by appropriate authorities it’s up to the government from here on out, but the masterminds behind this devious scheme are either caught, or hiding in friends/family’s homes running wall to wall like drowning rats.



i don’t normally take pleasure in the problems of other people, but once i learned how this operation worked, I’m glad to see it fall apart! I thought you all would like to know! good luck to any people affected by these sociopaths.[/quote]



Awesome. Good to hear.

Man, that is welcome news…and at the same time, sad news.  I haven’t heard anything from my former client.  I’m guessing she is simply too embarrassed to come tell me she was swindled.

  If you could call me…my info for you is too long, and I type slow. Any how, in Summ. I am a RR in Kalamzoo with a worse connection. My in-laws. They are involved with ABC and a Nancy Reid, despite my best efforts and I suspect with IOC, et al. They were on the edge of putting $$ with a Diversified Lending Group through them. Do a Google for that, a Bruce Friedman and ABC and find one that has been caught. Mar 4 2009 was first release of info.

Note a reply I did today. I just more conclusively linked David McQueen name to a scam my in-laws may be in…call me if you care to.

To the rep cave!

I am not an investment professional but a sucker with my tail between my legs now.  Diversified Global Investments out of New Zealand is a ripoff. Dave McQueen is a phony. I have some money invested with them since April 2008 and was receiving payments until Sep 09. Now no answer at their office in Grand Rapids, MI. A little voice inside me said this was too good to be true and I should have listened to that “gut” feeling. I am in Ft Wayne, IN, was sold on this investment through a “professional” in the ft wayne area and would love to hear from anyone else in the area who has been ripped off by this company. Please email me at [email protected] with diversified global in your subject line. I will post more as I get info from people that email me. I am just happy that I only had a portion of my $$$'s invested with this company and am not out my entire retirement like some others are.

I put Diversified Global Investments and it should have been Diversified Global Finance.  Sorry about that.  Thanks.

http://www.mlive.com/news/kalamazoo/index.ssf/2009/09/state_probe_of_abc_inc_focuses.html

  Twice in the last 2 weeks my in laws were seemingly pursuaded to write a withdrawal letter to DLAH(DGF by association) and each time their rep thru American Benefit Concepts has pesuaded them to stay. Her Name for the somewhat public record of this forum is Nancy Reed. After the Sun Kal Gazette Headline Sunday(google “ABC” for more on that) revealing more of the unscrupulous activities of this firm and it’s either similarly heartless or naively ignorant reps they were again ready to acknowledge the obvious, but Ms Reed called and said “everything will be just fine”.  With this being said I have to lean toward the heartless side as I can’t imagine someone smart enough to pass the requiered tests to be an insurance agent being that stupid as to actually believe without a doubt that every thing will be “just fine” given all that has come out.

Greed and fear are two very strong emotions. Greed for higher returns fear of out living your funds = doing things nobody with clear thought patterns would even begin to consider. Criminals know how to invoke both. I hope these same people didn't send funds to Nigeria to pay taxes on a great fortune that was Ali Baba's that half will be wired ASAP.

Oh so true…2 things expressed by in-laws as they were being sucked into these things…1) I will never understand the stock market but I understand 12% gauranteed.

I was actually introduced to “International Opportunity Consultants” by my brother in law.  He was sold on the company and had visited Dave Mcqueen at their offices in Grand Rapids, MI and Dave and his team were more than willing to answer any questions.  Seemed on the level somewhat with all the questions answered.  I was in that from April to October last year.   You could either keep your money in and “roll it” each month or take a check mailed to you each month.  I chose the 3% per month.  Then Dave Mcqueen and the whole group came to Ft Wayne in October of last year to change all of the local investors accounts.  They could no longer offer 3% a month, but were switching the company to Diversified Global Finance out of New Zealand and offering 1% a month with a promise of a profit sharing at the end of the year to bump it up higher.  They gave you a check to close out Internation Opportunity Consultants account and you could take it and run if you wanted to.  I considered it as I’ve been skeptical of the program the whole time I was in it.  But, I was stupid and took it out of International Opportunity Consultants and invested in Diversified Global Finance.  I did receive checks mailed like clockwork from October last year thru August 09.  Now, the phone number still works in MI but no calls back from them for any messages left.  Also, the guy that I invested thru in Ft Wayne still thinks everything is good and to “pray” for the company.  (This guy is an insurance person who I think doesn’t want to believe the bad outcome that is probably coming).  Also, Mcqueen and his team were good to play “religious” on things to seem more sincere.  I’m getting madder at myself sitting here thinking about it, but I did get some money back in interest for some time and wasn’t as dumb (hahah) to just keep it in and roll it each month.

Further, when Mcqueen had met with people last October, he claimed to have sold his Insurance Company in Michigan to get better returns for people through his new venture. Has anyone had contact with Mcqueen in the insurance industry in Michigan previous?

  Twice in the last 2 weeks my in laws were seemingly pursuaded to write a withdrawal letter to DLAH(DGF by association) and each time their rep thru American Benefit Concepts has pesuaded them to stay.

Was there more info in Sunday’s Kalamazoo paper?  I can’t find anything online.

Nothing was in 10/4 Gazette to my knowledge. All the news was in Sunday last week 9/27 on the front page lead article.

http://www.woodtv.com/dpp/news/target_8/Govt_McQueen_swindles_area_of_millions

Then in February 2009, an online forum for investment professionals came to life with a string of complaints and suspicions about McQueen and Diversified. A source said one of those contributors went to the FBI.

[quote=Wet_Blanket]Then in February 2009, an online forum for investment professionals came to life with a string of complaints and suspicions about McQueen and Diversified. A source said one of those contributors went to the FBI.

Why don’t you just get an appointment with Mr. Mcqueen? I did. We sat down & went through a tough Q & A. His answers were good with me. My Father-in-law created a self directed IRA through Smart Retirement Concepts, & is invested with Diversified Global Finance. He now enjoys a check every month for 1% of his account balance, (like clockwork). This may come as a shock to some, but the “ultra rich” of America don’t buy mutual funds at all! So what do they do? They pursue private investment opportunities out there. They play a different game than the “average Joe”. Their game works, & the “av. Joe’s” game doesn’t. (The rich get richer) You’re free to invest with this co. if you want to. You’ll get 12% like my Father-in-law. Or you can keep on doing what you’ve always done, & go down with the ship! Do some real homework before you make snap judgements just because you’re angry about losing a client. Or angry about not being able to compete. Look, I was at a meeting in Michigan late last yr., where the company had all of their clients come in for one of 3 meeting times. There were around 30, or so at the one I attended. I was able to take some time to talk to several in attendance. These people were some of the most savey investors I’ve ever had the opportunity to talk to. The caliber of these people were top notch. (Business owners, CEOs, Doctors, ect.) That only made me feel better about the entire situation. So, it is what it is. My Father-in-law is comfortable with it, & so am I. I’m betting that lady who left you is too, & that’s why she hasn’t called you back. Not being rude, just keeping it real.

this may be from someone with no experience, but I’d tell her straight up what you thought.  Tell her you think its a scam.  She’ll find out sooner or later and you’ll get an ass ton of credibility when she finally figures out it is a scam…  you can’t stop someone from screwing themselves, look at the 60% divorce rate.  But if you can show her you told her without saying you told her so, you’ll earn a butt ton of credibility and it will help you in the long run.  always go for the long run, short runs are bad ju ju.

I just read this and just wanted to commend Indy for getting rid of these bastards.  I think this really started because you cared for your former client.  That is, after all, what this business should be about.

In retrospect, should this have been reported to FinCEN also in addition to the FBI.  They also cover these types of scam as I recall from our AML’s CE course.

[quote=golfnut7772]Why don’t you just get an appointment with Mr. Mcqueen? I did. We sat down & went through a tough Q & A. His answers were good with me. My Father-in-law created a self directed IRA through Smart Retirement Concepts, & is invested with Diversified Global Finance. He now enjoys a check every month for 1% of his account balance, (like clockwork). This may come as a shock to some, but the “ultra rich” of America don’t buy mutual funds at all! So what do they do? They pursue private investment opportunities out there. They play a different game than the “average Joe”. Their game works, & the “av. Joe’s” game doesn’t. (The rich get richer) You’re free to invest with this co. if you want to. You’ll get 12% like my Father-in-law. Or you can keep on doing what you’ve always done, & go down with the ship! Do some real homework before you make snap judgements just because you’re angry about losing a client. Or angry about not being able to compete. Look, I was at a meeting in Michigan late last yr., where the company had all of their clients come in for one of 3 meeting times. There were around 30, or so at the one I attended. I was able to take some time to talk to several in attendance. These people were some of the most savey investors I’ve ever had the opportunity to talk to. The caliber of these people were top notch. (Business owners, CEOs, Doctors, ect.) That only made me feel better about the entire situation. So, it is what it is. My Father-in-law is comfortable with it, & so am I. I’m betting that lady who left you is too, & that’s why she hasn’t called you back. Not being rude, just keeping it real.

Any updated on this case?  Last I heard $$$'s were frozen and Mcqueen was out on the street.  No money has been paid back....not that it will.....

It's been awhile and I don't see anything since March, but it looks like Mr. McQueen and his co-conspirators are in some deep doo-doo...

http://blog.mlive.com/followthemoney/2010/03/us_attorney_wants_433000_relat.html

...and (no surprise) I never heard back from my former client who would have been much better off staying with that terrible variable annuity I had her IRA invested in.  This is just part of the damage I see Bogleheads doing to the general public.

It amazes me how these places stay in business, and moreover, why ANYONE in the public falls for their "promises" and "guarantees."  Most of us I would imagine are hardworking, ethical financial professionals and realize how difficult it is at times to bring on new clients "the right way." 

There is a company out in my area of town called the Crash Proof Retirement, or something to that affect.  The company president supposedly makes over $7 million a year shucking equity indexed annuities to rooms full of senior citizens.  The guy isn't securities licensed and boasts these ridiculous claims about how he knows more than people's financial advisors and how the average FA doesn't understand the intricacies of certain "IRS regulations," which I'm convinced he just makes up.  He also makes excuses for why he isn't licensed, etc. 

It's all pretty amazing to me that people like this prey on people and actually lie to them to stick them into investment products they have no understanding of.

I came across a potential client who took his money to these people and he was almost brainwashed into believing these people were the golden ticket to his retirement.  I did everything short of telling him these people were crooks, and it was futile. 

[quote=golfnut7772]Why don't you just get an appointment with Mr. Mcqueen? I did. We sat down & went through a tough Q & A. His answers were good with me. My Father-in-law created a self directed IRA through Smart Retirement Concepts, & is invested with Diversified Global Finance. He now enjoys a check every month for 1% of his account balance, (like clockwork). This may come as a shock to some, but the "ultra rich" of America don't buy mutual funds at all! So what do they do? They pursue private investment opportunities out there. They play a different game than the "average Joe". Their game works, & the "av. Joe's" game doesn't. (The rich get richer) You're free to invest with this co. if you want to. You'll get 12% like my Father-in-law. Or you can keep on doing what you've always done, & go down with the ship! Do some real homework before you make snap judgements just because you're angry about losing a client. Or angry about not being able to compete. Look, I was at a meeting in Michigan late last yr., where the company had all of their clients come in for one of 3 meeting times. There were around 30, or so at the one I attended. I was able to take some time to talk to several in attendance. These people were some of the most savey investors I've ever had the opportunity to talk to. The caliber of these people were top notch. (Business owners, CEOs, Doctors, ect.) That only made me feel better about the entire situation. So, it is what it is. My Father-in-law is comfortable with it, & so am I. I'm betting that lady who left you is too, & that's why she hasn't called you back. Not being rude, just keeping it real.[/quote]

I've worked on the institutional side of Wall Street with people richer than you can imagine - often well-known celebrities and captains of industry and your comment above is completely wrong.  Other than alternative asset classes like hedge funds, private equity funds, etc., the ultra-wealthy also invest a good portion of their assets in the same investments that we all do.  Do they get access to those investments at a more institutional level - absolutely, but it's essentially the same underlying investment. 

Putting your money with a company "guaranteeing" anything is an immediate red flag - for wealthy investors and the lady next door alike.  Guarantees tied to a market-based investment are essentially illegal in our industry, and the fact that the clients on firms like this cannot even explain the investment they hold should make anyone VERY NERVOUS. 

You're full of S*it, plain and simple.  Why can't this company tell people what the investment is?  It's absolutely ridiculous that they fall short in that regard, and the people working at these companies all boast the same things you just did and state that "you should just sit down with them and be amazed - I was!"  Great, just don't complain when you find out the company president either went to jail or took all of your money to the Cayman Islands for an extended retirement on his terms.