To The Moon

Securities Fraud – Promissory Notes

Promissory note fraud takes the form of short-term debt obligations issued by bogus companies. Typically, they're sold through independent insurance agents and offer above market returns with little or no risk – “guaranteed”.

Always beware of any investment offering above market interest rates and guarantees. It's a potentially lethal combination.

Also, beware of trusted professionals selling investment products that aren't their ordinary field of expertise (such as insurance salespeople or accountants promoting investments).

Securities Fraud – Advance Fees

The objective of this fraud is to steal the advance fees you pay to participate in some larger objective.

For example, you might be asked to make a series of upfront payments for a bargain shipment of heating oil, coal, or some other commodity that ultimately never arrives.

Alternatively, you might be offered an interest-free loan from an off-shore bank if you pay an application fee in advance.

Regardless of the service or product promised, the formula is for you to pay an entrance fee now for something you’re supposed to receive later – but never arrives. The fee paid is the scam artist's profit.

Securities Fraud – Inappropriate Investments

Certain legal investments cross the boundary into securities fraud when they're sold to the wrong person without adequate disclosure.

The most common investment in this category is variable annuities because of their costly surrender charges, steep commissions, and high expense structures.

For the complete story on variable annuity investment fraud see the related article “Variable Annuities Explained – What You Must Know”.

Similarly, callable CD’s are higher yielding, longer-term certificates of deposit that can be redeemed by the issuing bank. The problem with these securities is the potentially high penalty fee for early withdrawal if the investor needs liquidity.

The long-term nature and high surrender charges make them inappropriate for investors needing current access to their money.

$FINGERTANGO(06860)$ $ADTIGER CORP(01163)$ $WINDMILL GP(01850)$ $LUOYANG GLASS(01108)$ $Alco(00328)$