The art of the securities/investment conby Udo Hoffmann Erudite polymath
Today I would like to explain a simple yet effective con that has been used for decades and still works as well now as it did in the beginning.
Everyone wants to save money for their retirement and or old age and some of the most common ways are to buy stock, securities or have some sort of investment plan that will generate a income that builds your nest egg. Simple enough.
Buying honest and legal bonds works well but has a small growth rate. Riskier investments may generate more money but as the term "risk" implies a loss could be a result as well.
All this aside, WHO you have as your fund/bond/stock manager can be just as risky as what you have invested in!
Let us say that I am a person looking to acquire a large portfolio of investors who's money I can manage and eventually, at the right time, make off with via fund transfers and shady deals.
How do I get YOU to entrust me with your money? Its actually very easy.
Lists of investors are readily available and all I need to do is buy a list. Lets say I buy a list of 100,000 names of people who invest their money with brokerage firms. Once I have a list I simply follow these steps...
Step 1) I pick a volatile stock or fund that has been moving up and down a lot in the past 6 months.
Step 2) I send 50,000 names on the list a prediction that the stock/fund will move UP and the other 50,000 names a prediction that it will move DOWN by a certain date.
Step 3) Once the date has arrived I drop the 50,000 who received the wrong prediction and make a big production of it to the people who received the correct prediction AND make a second prediction for a movement UP to 25,000 of the names and a second prediction of a movement DOWN to the other 25,000!
Step 4) I repeat with the 12,500 who received the correct prediction in step 3.
Step 5) I repeat with the 6,250 who received the correct prediction in step 4.
Step 6 I repeat with the 3,125 who received the correct prediction in step 5.
Do you see where this is going?
I now have a pool of over 3,000 people who have received 5 consecutive CORRECT predictions from me! I will be viewed as a genius by many of them.
At this point I can repeat the steps another 1 or 2 times or just simply offer to manage their funds for them now With my track history there will be a large percentage who will be happy to accept. VIOLA! Mission accomplished.
Now I don't care is its penny stocks, bonds, securities or funds the principle is the same and while it is illegal and both morally and ethically wrong it happens all the time and good people lose everything they have.
So "Caveat Emptor!" Let the buyer beware. If someone you don't know shows up on you door or in you email and shows you an incredible track record then offers you the chance to exponentially increase your investments by letting them manage it for you. Just say "no thanks" and call the BBB and/or your local police.
Created on Jul 15th 2011 15:57. Viewed 798 times.
No comment, be the first to comment.