Thursday, September 8, 2011

The Top 10 Investment Scams, Schemes and Scandals

The NASAA (North American Securities Administrators Association) has just published their top 10 list of Investment Scams, Schemes and Scandals based upon complaints and criminal activity as reported by the US states and Canadian provinces.
  1. Ponzi Schemes (think Bernie Madoff)
  2. Elder Fraud and Abuse
  3. Promissory Notes
  4. Unscrupulous Brokers (i.e churning your accounting, or selling you investments that are clearly inappropriate for your financial situation)
  5. Affinity Fraud (i.e., fraudsters solicit money from identifiable groups such as retiree communities or religious and ethnic groups — often posing as a member of the group) 
  6. Insurance Agents and Other Unlicensed Security Sellers
  7. Prime Bank Schemes (i.e., institutions that offer excessively high interest rates on CDs)
  8. Internet Fraud
  9. Mutual Fund Business Practices
  10. Variable Annuities

Do any of the items of the list surprise you? Anything missing from the list that you expected to see?

1 comment:

  1. I came up with a new name to describe subprime. Lets call it subcrime.

    ReplyDelete