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How to Identify a Ponzi Scheme

Posted on: Fri, 04/10/2009 - 16:11
How to Identify a Ponzi Scheme

The SEC charged Aurora, Colorado businessman Shawn Merriman and his company Market Street Advisors with fraudulently obtaining $17 million to $20 million from at least 38 investors in Colorado, Utah, and Minnesota to support a luxurious lifestyle. One investor did not even know he was involved in a Ponzi scheme until Merriman called him to notify him of the losses. The investor lost about 750,000 dollars in the Ponzi scheme.

How do you know when you are involved in a ponzi scheme? Do you have to lose all your money and wait until the head guy is busted before you know? And how in the world do the investors get their money back?

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Posted on: Fri, 04/10/2009 - 16:14 #1

I saw where James Hankins Jr. was accused of taking money from investors as part of a pyramid schemeA pyramid scheme is an illegal multilevel marketing program in which people pay an entrance fee for the opportunity to recruit others to do the same. and using the funds to make real estate purchases and cover his own lavish lifestyle expenses, including trips on private planes and home improvements. I have no idea how you would identify these crooks before it is too late. I would be so pissed at losing money to these clowns.

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