Failed Get-Rich-Quick Schemes
Get-rich-quick schemes have been around for many decades. Some are more complex than others. But there have been three that have unwittingly attracted literally millions of honest investors looking to make a fast buck without any hard work. That's why they were all, and still are, simply too good to be true.
Investing in "Super Hot" Stock Tips
Unscrupulous stock market brokers and many hedge fund managers have been known to engage in the practice of artificially raising the prices of certain stocks solely for the sake of scamming and defrauding aspiring investors. They can falsely increase the value of most any stock in a number of sophisticated ways that are nearly impossible to figure out.
One way is simply by inflating earnings with a false set of books that's performed by the highly knowledgeable and equally unscrupulous accounting departments of these stock investment firms. They get people who invest as much money as possible on what they call super hot stocks, but since they have no legitimate market value, their prices dramatically diminish over the short term and would be investors lose nearly every cent they put into them nearly overnight.
Created by an actual scammer named Ponzi, such schemes work by
getting people to invest a small sum of money at the beginning of
the process. Then the scammer pays back a hefty profit. Then a
little more money is asked to be invested. And still more profit is
returned. So everything looks fantastic for the small time
individual investors. But there then comes a point when the Ponzi
scammer asks for an extraordinary amount of money promising even
more returns. What ends up happening is he usually physically
vanishes with the entire investment principal and can never be found
Florida Land Buying Schemes
Fraudulent real estate schemers and speculators promised that people who had some cash could purchase "exclusive" sight-unseen Florida properties for pennies on the dollar and cash in a few short months down the road. The problem was that the owners of theses properties, mostly vacant swamp land that was not able to be built on, never allowed their investors to ever come visit the properties in person. They were bought with the schemer acting as a middleman/broker to claim he had thoroughly investigated the properties and that they were inspected fully and were legally appraised at a substantial fair market value. But none of this was ever true, and when investors finally found out they were scammed, it was too late as the scammers ran away with their funds never to be seen again.
Copyright Rich Mann (!?!) 2010