Scams, schemes, frauds and such
Anyonoe can be caught by investment fraud. That's becoming clearer every day in this economy.
"When the tide goes out, it reveals all the shipwrecks." That's what securities lawyers say, according to attorney Scott M. Dimond, a shareholder at Dimond Kaplan & Rothstein in Miami.
Like other attorneys, he suspects the receding tide is uncovering the largest number of investment frauds since tech stocks collapsed in the bear market of 2000-2002.
A group of state regulators, the North American Securities Administrators Association, issued its list of the top ten investment scams -- from investing in infomercials to promissory notes.
Look at their list here:
In fact, it was a busy day on the fraud front. Finra, the Financial Industry Regulatory Authority, and the SEC, issued an investor alert about leveraged Exchange Traded Funds and inverse ETFs. If you're considering one, read this first...
I'll be out of the office for a few days. Talk to you next week.
Harriet Johnson Brackey, the personal finance columnist for the Sun Sentinel, is an award-winning business reporter. Her columns for 2008 were named "The Best in the Business," a national award chosen by her colleagues at the Society of American Business Editors and Writers.
Comments
ANOTHER SCAM - BEWARE!!!
Here’s how it works. You suffer damage to your property. Your insurance company refuses to pay the full amount that it will take to repair your property. Someone recommends a Public Adjuster Claim Service to you. The salesman (who works on commission) states that his company is the best in the business, guarantees that he will get you the additional money that you need to fully repair the damage and will do all of this quickly. All of this is offered for a fee of 20% of the additional money you get when the claim is settled. Out of financial and emotional desperation, you sign their contract. You are now officially scammed.
Be advised that a Public Adjuster Claim Service is nothing more than a licensed insurance salesman. He has no more influence over your insurance company than you do.
Before you sign a Public Adjuster Claim Service contract (they are all from the same “boilerplate”), know that this contract can NEVER be cancelled (after the three-day right to rescind has passed), does not have a termination or expiration date, does not specify what will be specifically provided or delivered, lives on until the claim is settled, cannot be terminated for failure to deliver (breach of contract) and the Public Adjuster Claim Service is legally entitled to receive his fee (because of the contract wording) even if he has nothing to do with the settlement. In fact, he doesn’t have to do a thing to collect his full fee!
In my case, after I signed his contract, it was filed away waiting for someone to settle the claim. It is guaranteed money to the Public Adjuster Claim Service.
The Public Adjuster Claim Service that I contracted with did nothing for seven months – not even call me. I fired them – I thought. I hired an attorney who settled the case/claim 15 months later. Because of the Public Adjuster Claim Service contract, I was still obligated to pay his $19,000 fee.
If this sounds like sour grapes, call the State of Florida Consumer Protection Agency (877-693-5236) and ask them to verify my statements and the reputation of the Public Adjuster Claim Service. The only way to stop this cheating scam is to change the law. Better yet, don’t sign a Public Adjuster Claim Service contract.
Hire an attorney if you need to and don’t let them charge you more than a 20% fee. And a reputable contractor will provide a free quote to repair your damage that can be given to your attorney to forward to your insurance company.
BEWARE. DON’T HIRE A PUBLIC ADJUSTER CLAIM SERVICE. You will be scammed like me.
Posted by: Mordy Ki | August 27, 2009 10:47 AM
It is a shame you were scammed. Like all other professions, including lawyers, there are bad apples out there. I am a public adjuster, and have only high regard for those I've worked with, and helped their clients to resolve their claims. Do your homework, and get references, like any other service.
Posted by: Eric Shapiro | September 12, 2009 1:22 PM
It is a shame you were scammed. Like all other professions, including lawyers, there are bad apples out there. I am a public adjuster, and have only high regard for those I've worked with, and helped their clients to resolve their claims. Do your homework, and get references, like any other service.
Posted by: Eric Shapiro | September 12, 2009 1:22 PM