Charles Ponzi was born in 1882 and only became noted in 1920. But the history of fraud and Ponzi schemes in USA goes back to the early 19th century. Unfortunately it continues to plague us with multiple schemes being discovered every single year, with many going undetected for dozens of years. Many a time the reason people fall for these "investments" is due to lack of information.
What we have set out todo at InvestingReview.org is to collect as much of information about each investment firm registered with SEC as possible. All this information is out there on variety of government websites, but is not always in a very user friendly, easy to search format. We hope you, the potential investor, will use this information to look out for the following common red flags:
- Does the fund claim high investment returns with little or no risk?
- Are the returns overly consistent year after year
- Is the firm registered with the SEC or with state regulators?
- Are the sellers licensed?
- Is the strategy Secretive and/or complex?
"Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman."
Just as "Sunlight is said to be the best of disinfectants". Data and freedom to access the information can be the best disinfectant to help an investor avoid the fraud and Ponzi schemes.