The Spanish-born American philosopher George Santayana said, “Those who cannot remember the past are condemned to repeat it.” To save you, the potentially poor reader, from financial ruin, what follows is a rogue’s gallery of financial frauds to avoid. First, here are a few investing rules that will help you avoid such frauds:
1. Do not invest in arcane schemes with promoters who will not explain the investments clearly. Make sure you understand exactly where the investment returns will come from and at what risk.
2. Beware the “quick buck” or getting “something for nothing.” Promises of “too-good-to-be-true” returns are just that.
3. Always do reference checking before investing. ...