May 1, 2012 – 6:02 PM ET
Bernie Madoff got our attention. We wondered: Could it happen to us?
The reality is that these scams are as old as time, and are going on right now. There are also ways to avoid them. Here is how:
Never hand over an investment cheque payable to a numbered company, or a small private company, or to the individual advisor’s name
1 “We truly, truly believed this man.” This was a quote from a recent victim of a 38-year-old real estate entrepreneur from Oakville. Trusting someone takes time and is an important thing. The problem is that all victims seem to say the same thing. If someone seems honest and respected in the community, they probably are. However, don’t invest your money based on that. It has cost people billions of dollars. There needs to be something much more tangible beyond personal trust.
2 “The rates of return are so good.” This was a comment from one of my clients with respect to GIC rates at Stanford International Bank in Antigua. They wondered if they should put some of their safe money there ... Read more