In the wake of the discovery of Bernie Madoff’s longest-running Ponzi scheme that stole millions of dollars over several years, the Securities and Exchange Commission pledged to crack down on the scams, but consumers are still losing money to crooked money managers. “Whether the Ponzi scheme is for $10 million or $100 million, it’s continuing to happen simply because someone knew the schemer,” says Chuck Malkus, author of The Ultimate Ponzi: The Scott Rothstein Story. “In most cases it’s an affinity crime where the victim was referred by someone at their church, synagogue or charitable organization.” Fraudsters don’t just target the super rich; they also prey on people with sizeable savings put aside for investing or retirement and pledge to multiply the funds in a short amount of time. While the promise is enticing, you need to learn the red flags of a possible Ponzi scheme to protect your hard-earned money. More on Fox Business News here.
