Most Popular Fraud Schemes

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Fraud Schemes

&NewLine;&NewLine;&NewLine;<h3 class&equals;"wp-block-heading"><span class&equals;"blackgraphtx"><strong>&OpenCurlyDoubleQuote;Ponzi<&sol;strong><&sol;span><span class&equals;"blackgraphtx"><strong>’<&sol;strong><&sol;span><span class&equals;"blackgraphtx"><strong>’ Schemes<&sol;strong><&sol;span><&sol;h3>&NewLine;&NewLine;&NewLine;&NewLine;<p><span class&equals;"blackgraphtx">&OpenCurlyDoubleQuote;Ponzi” schemes promise high financial returns or dividends not available through traditional investments&period; Instead of investing the funds of victims&comma; however&comma; the con artist pays &OpenCurlyDoubleQuote;dividends” to initial investors using the funds of subsequent investors&period; The scheme generally falls apart when the operator flees with all of the proceeds or when a sufficient number of new investors cannot be found to allow the continued payment of &OpenCurlyDoubleQuote;dividends&period;”<&sol;span><&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p><span class&equals;"blackgraphtx">This type of fraud is named after its creator—Charles Ponzi of Boston&comma; Massachusetts&period; In the early 1900s&comma; Ponzi launched a scheme that guaranteed investors a 50 percent return on their investment in postal coupons&period; Although he was able to pay his initial backers&comma; the scheme dissolved when he was unable to pay later investors&period;<&sol;span><&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p><span class&equals;"blackgraphtx"><strong>Tips for Avoiding Ponzi Schemes&colon;<&sol;strong><&sol;span><&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<ul class&equals;"wp-block-list">&NewLine;<li><span class&equals;"blackgraphtx">Be careful of any investment opportunity that makes exaggerated earnings claims&period;<&sol;span><&sol;li>&NewLine;&NewLine;&NewLine;&NewLine;<li><span class&equals;"blackgraphtx">Exercise due diligence in selecting investments and the people with whom you invest—in other words&comma; do your homework&period;<&sol;span><&sol;li>&NewLine;&NewLine;&NewLine;&NewLine;<li><span class&equals;"blackgraphtx">Consult an unbiased third party—like an unconnected broker or licensed financial advisor—before investing&period;<&sol;span><&sol;li>&NewLine;<&sol;ul>&NewLine;&NewLine;&NewLine;

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