Bridger PenningtonFund Launch & Investment Expert

Everyone is honest until mom gets cancer

30 Jun 2023 · 1 min

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Fund managers who seem honest can turn to fraud when facing a personal crisis like a parent's cancer treatment. The speaker argues most fraudsters start legitimate and rationalize stealing from investors to help family. Protect yourself with third-party audits and independent administrators that prevent misuse even when managers face emergencies.

Chapters

Everyone's honest until mom gets cancer. I work with a lot of people that run funds and syndications, and everyone is always above board and honest and buttoned up until mom gets cancer and there's a million-dollar treatment overseas that we can do. And this person is running a fund or syndication and has a pool of money right there, and they go, man, you know what? Mom's going to die. I'm just going to borrow a million dollars from the fund to go pay for mom's cancer treatment. And what happens is they just committed a huge amount of fraud, but they feel justified. They feel justified because they're trying to save their mom. I believe most fraudsters, people out there that have these big things, don't start out as fraudsters. Something goes on in their life that then makes them justify committing fraud with other people's money. So when I invest into any deal, I make sure there are third-party audits, third-party administrators on that fund or syndication. So even if mom does have cancer and it's a million dollars and we hope mom gets better, but it's not even actually possible or even an option to use the money from the fund to fund something like that.