Well here we go again, another scam. This one done by a Michigan broker targeting seniors to refinance their homes and use the proceeds to buy worthless securities. Another Ponzi Scheme. This is sad because seniors do not have any protection from overseers when approached by scam artists like this. And the scams and frauds are increasing. As people's nest eggs are being eroded by the recession, they become more desperate for ways to maintain their life style, especially if they are on a fixed income. So they are open to these "too good to be true" opportunities. A Daily Money Manager can be used as a resource to some of these scams, as well as other people. But there are many and varied schemes, not all of them can be caught. Look at Lottie Kendall's blog on the email from the IRS. The IRS does not send emails!!!
Here is the story on this guy: http://www.smartmoney.com/breaking-news/on/?story=ON-20090928-000267-1328
A new program in California is the "Take Charge California" program. It is done by the CA Dept of Consumer Affairs. This is a good resource for you and clients. I suggest you bookmark it and refer to it periodically:
http://www.takechargeca.ca.gov/
Please make sure that you and your clients review all offers, especially unsolicited ones, to have you invest. If they are trying to separate you from your money, it deserves close scrutiny. Be careful.
Skip Frenzel
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