Beware of Ponzi Schemes with Alan Akina

22 Nov 2017 · 2 min

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1:31

In this short financial fitness segment, Alan Akina warns viewers about the dangers of Ponzi schemes. He references the infamous Bernie Madoff fraud, explains how Ponzi schemes operate by paying existing investors with new investors' money, and highlights their reliance on a constant influx of new capital. Akina outlines three key warning signs from investor.gov: the promise of high returns with little or no risk, the need for continual recruitment of new investors, and the inevitable collapse when recruitment stalls or investors cash out. He concludes by urging viewers to conduct thorough due diligence before investing any money.

Chapters

Good morning, gang. Can you recognize a Ponzi scheme if presented with one? It will be very wise for you to pay close attention to today's financial fitness report so that you won't fall victim to these types of scams. Now, remember Bernie Madoff? He was the guy that swindled lots of wealthy people out of tens of billions of dollars in the largest Ponzi scheme in history. His crime was so evil, he got locked up for 150 years. 50 years, and I've been getting calls about certain Ponzi schemes going on across the state that got me worried. You see, I've seen it before where good people got sucked in and ended up losing thousands and thousands of their hard-earned money. So here are 3 things for you to know to help you to spot a Ponzi scheme according to investor.gov. First, a Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. The Ponzi scheme organizers often promise you to invest your hard-earned money and generate high returns with little or no risk. Ponzi schemes require a constant flow of new money to survive. When it becomes hard to recruit new investors or older investors cash out, the Ponzi scheme will collapse. As with any investment opportunity, Do your homework before investing a dime. For Wake Up Today, I'm Alan Akina. See you on Monday.