Myth 1- Ponzi schemes are pyramid-type frauds that involve “robbing Peter to pay Paul,” including those that begin when legitimate businesses run into trouble.
Myth 2- Ponzi predators target only the rich.
Myth 3- Ponzi schemes are quickly detected.
Myth 4- Ponzi schemes are distinguished by paying old investors with money from new investors.
Myth 5- Ponzi predators are motivated solely by “the high life.”
Myth 6- An investment firm’s registration with the U.S. Securities and Exchange Commission shows that its investments are above-board.
Myth 7- Offshore investments provide high returns and domestic investments offer low risk.
Myth 8- Ponzi operators use only private marketing efforts, such as seminars, to lure investors.
Myth 9- All investments pitched as certificates of deposit or CDs are safe and insured by the Federal Deposit Insurance Corp.
Myth 10- Investments held by independent custodians are protected from Ponzi predators.
If you have questions regarding the handling of your brokerage account, The White Law Group can help. To speak to a securities attorney, please call our Chicago Office at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investors protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
To learn more about The White Law Group, visit http://www.whitesecuritieslaw.com.