episode: 70

Investor Beware: How to Protect Your Money from Scams and Fraud

March 8, 2023

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Protect Your Investments

Financial fraud is a serious issue that has unfortunately cost many investors their hard-earned savings. Although technology has helped fraudsters find new ways to dupe investors, the same core themes appear again and again.

From Ponzi schemes to fake investment opportunities, these scams lure investors in with promises of high returns and low risk. In reality, there’s no increased reward without increased risk, and even when these plots are revealed, many people never recover what they invested.

The best way to protect yourself is to be aware of the warning signs and educate yourself on the steps you can take to protect your investments. In this episode, Keith and Marcelo explore the world of financial fraud, some famous examples of these schemes, how they work, how you can safeguard your finances, and so much more!

Thank you for listening!

Don’t fall for Promises of High Returns and Low Risk

  • Why we’re talking about financial fraud (1:14)
  • Different types of financial fraud and famous examples (3:01)
  • How Ponzi schemes work (6:24)
  • Why the biggest Ponzi schemes are usually uncovered during market corrections (9:57)
  • Charles Ponzi’s landmark scheme in the 1920s (10:51)
  • How Bernie Madoff kept his fraudulent scheme running for 20 years (12:10)
  • Earl Jones’s Canadian scheme targeting the elderly in the 80s and 90s (15:08)
  • Common themes among these long-running Ponzi schemes (17:17)
  • What the sentencing of Gary Sorenson and Milowe Brost show about the significant differences in penalties for white collar crime in Canada vs. the US (18:26)
  • The Norbourg scandal in Montreal (19:33)
  • The biggest reasons people keep falling for these schemes (21:09)
  • Warning signals to be aware of to protect yourself from financial fraud (24:15)
  • The AMF’s five steps to avoid fraud (26:36)
  • And much more!
Mentioned in this Episode:

Meet your hosts

Keith Matthews

Keith Matthews

Partner & Portfolio Manager

Marcelo Taboada

Marcelo Taboada

Associate Portfolio Manager

Lawrence Greenberg

Lawrence Greenberg

Associate Portfolio Manager

Thanks for Listening!

Be sure to subscribe on AppleGoogleSpotify, or wherever you get your podcasts. And feel free to drop us a line at lawrence@tma-invest.com or 514-695-0096 ext.112 Follow Tulett, Matthews & Associates on social media on LinkedInFacebook, and more! Follow The Empowered Investor on FacebookLinkedIn, and Instagram

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