Comments on: When Feeling Close Brings Bad Money Judgment

By: cjbr549

cjbr549 — Mon, 14 Sep 2009 18:56:55 +0000

The old adage “If something is too good to be true, it probably is” should be taught to everyone at a very early age. And I would leave out the “probably”. For that very reason I was a bit dismayed that Bernie Madoff got 150 years for his crimes. Yes, he stole allot of money from allot of people, but he used their own greed to do it. If his investors (some of which knew it was a fraud, they just thought it was a different kind of fraud) had heeded this warning, he would not have been able to do what he did. People are serving less time for premeditated murder than Madoff got. I think it’s in most peoples nature to give people, especially those you are close to the benefit of the doubt, and that’s what these schemes pray on. You usually have to get burned a time or two before you figure it out, and that plays into these schemes as well. There’s always a fresh crop of suckers.

By: Lurker Carl

Lurker Carl — Sun, 06 Sep 2009 15:46:01 +0000

MasterPo, I would assume the church leaders have been hoodwinked as well if they are not part of the scam.

By: kitty

kitty — Sat, 05 Sep 2009 23:49:22 +0000

Good article. It is so easy to get caught in one of those scams. Especially if the person who offers this “opportunity” looks nice and is part of your group.

I’ve been very fortunate with my relatives and friends though. We’ve been borrowing/lending to each other forever and have never had problems. I have cousins in Russia and whenever I go there I bring tham some cash. Even though they have very little, they still always refuse. I have to work very hard to get them to take the money they clearly need. When I totalled my car, several friends called me and offered to lend me money if I need. When my friend had a temporary cash flow problem – she was about to lose her job and wanted to max out her 401K in less than 6 months – I lent her a few thousand for 3 months. She returned it to me in less than 2 months.

A question. How would you react if someone who works in your building but not in your department suddenly came to your office and asked to lend $70 for 3 days? Someone in building maintenance whom you don’t know personally except for smile and say Hi when you see them working; maybe occasionally she complimented you on your clothes and you told her where you bought it.

Our building’s cleaning lady suddenly came to my office last week and asked to lend her money. She doesn’t speak English very well and my Spanish is rusty so I didn’t catch why, she was speaking too fast. I refused – I simply didn’t have that much cash on me (not sure what I’d have done had I had it) – but I’ve been feling a little guilty about it since. After all, I could’ve gone to an ATM and maybe this was a real emergency for her to come to a stranger, something serious. Sure, I have no reason to trust a stranger, so it may have been a gift. Wish I knew her reason. What do you think?

By: MasterPo

MasterPo — Thu, 03 Sep 2009 03:26:10 +0000

Lurker – Then what’s in it for the church leaders? A cut of the take?

By: lurker carl

lurker carl — Wed, 02 Sep 2009 01:39:17 +0000

It’s especially common in churches when the church leaders invite a con artist to preach a scheme to the congregation. The elders would never allow a thief to rob the flock. Anyone who attempts to expose the fraud often gets shouted down and reprimanded. No thinking allowed.

By: MasterPo

MasterPo — Wed, 02 Sep 2009 01:38:10 +0000

Good article.

Many times in my adult life I have been approached by people, friend and just causuals, to “invest” in their busines. When I ask to see their business plan, articles of incorporation, name of their attorney and accountant, they clam up VERY quickly!

Too bad. I wouldn’t mind being an “Angel” investor in a good small business. It would be fun (and hopefully profitable!).

Some years ago I saw a finance show that featured (among other topics) a husband and wife that had their own company that manufactured and sold educational toys and games for small kids. The couple owned 51% of the stock and had 6 or 7 private investors owning the rest. That looked great!

I regret never having found such a legitimate opportunity.

By: Todd @ Personal Finance Playbook

Todd @ Personal Finance Playbook — Tue, 01 Sep 2009 16:33:13 +0000

I had a high school teacher I was close to that emailed me while I was in undergrad and told me he had an “exciting investment opportunity for me.” I dropped by his classroom when I was in town and quickly saw what he was into for what it was (a pyramid scheme). I told him I’d think about it and never got back to him. I’m not sure how I should have handled it. Maybe I should have explained to him what it was and why it was such a bad deal for him. I think I was worried that that would seem condescending. He was older than me (obviously) and had been my high school baseball coach. I don’t know how he had never encountered investment schemes before. Very nice guy. I guess he learned that lesson the hard way.