Beware of Foreclosure Rescue Scams (via RE/MAX Premier Group’s Blog)

I’ve been seeing these scams on the web and occasionally hearing them on the radio. These scammers are like vultures circling over people already in financial difficulties to extract their last dollar.

Business ethics? There really isn’t much to say. The people who run these scams are merely low life scum without any intention of providing any legitimate service. If there is no legitimate service in the first place, we are talking fraud.

If you are in foreclosure or near foreclosure – Follow the advice in this article.

James Pilant

Beware of Foreclosure Rescue Scams The threat of losing your home can lead some homeowners to take desperate measures to find companies who claim to reduce your monthly mortgage payment or take other steps to save your home. Unfortunately, there are many scam artists stealing millions of dollars from distressed homeowners by promising immediate relief from foreclosure. Keep this in mind: If the advice or information sounds too good to be true, it probably is. Don’t be taken advant … Read More

via RE/MAX Premier Group’s Blog

Madoff and Shapiro, Ponzi Schemes?

Madoff and Shapiro, Ponzi Schemes?

Ponzi Scheme (from Wikipedia)

A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.

The system is destined to collapse because the earnings, if any, are less than the payments to investors. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases. While the system eventually will collapse under its own weight, the example of Bernard Madoff’s investment scandal demonstrates the ability of a Ponzi scheme to delude both individual and institutional investors as well as securities authorities for long periods: Madoff’s variant of the Ponzi scheme stands as the largest financial investor fraud committed by a single person in history. Prosecutors estimate losses at Madoff’s hand totaling roughly $21 billion, as estimated by the money invested by his victims. If the promised returns are added the losses amount to $64.8 billion, but a New York court dismissed this estimation method during the Madoff trial.

Nevin Shapiro is accused of stealing around 80 million dollars from investors. Like most Ponzi scams, everyone wanted to believe. Read the article.