When the Madoff scam broke in 2008, a lot of people seemed to think that dragging his astoundingly nefarious activities into the stark light of day would mark the end of onzi schemes. People wouldn't believe anymore in investment products or portfolios that never went down. They'd run away from the smooth-talker's big, empty promises to make them a whole lot of money without any risk. Ponzi schemes wouldn't fool us anymore. At least for a little while. Maybe. Or not... Apparently Ponzi practitioners are still alive and well and continuing to fleece unsuspecting investors out of their hard-earned cash. A recent disciplinary deal struck between FINRA and an allegedly crooked and obviously very foolish financial adviser named Sarris (with the help of Sarris' allegedly equally crooked and presumably also very foolish father) reveals how the felonious spirit of Madoff and Ponzi lives in our, we thought, more cautious world:
e must be more careful. Of course men and women who manipulate others in order to take their money are predators, plain and simple; and their techniques are constantly evolving. But as we at The Green Firm have seen over the years, more often than not, while the products and mechanics of their schemes change, crooked brokers, advisors, and salespeople of pretty much every stripe tend to strike the same incredible pitch:
If you ever hear anything like that statement above, "riskless investment strategy that never lost money and consistently returned in excess of 13% per year on average," alarm bells should start going off. Remember, as FINRA strongly counsels and we wholeheartedly second, "If it sounds to good to be true..." You know the rest.
If you or someone you know has the victim of a Ponzi scheme or any other form of investment advisor misconduct, please contact us for a free consultation.