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If you have ever been duped by shady investors to invest in inappropriate high-fee investments, you have just been hit with the Ponzi Investment scam. A Ponzi scam appears to be real but when you take a closer look, the investment is really fraud. [br][br]One way the scam takes off is the scammer organizes the scam by way of a pyramid scheme, Early investors appear to be making great returns. But in reality they are being paid off by later investors. The bad part of this type of scam is that it has been known to wipe out many seniors bank accounts. [br][br]The reason the Ponzi scam works is because the offerer makes the investment sound so enticing, exciting, and offers huge returns on the initial investment. For example, some investments may include mortgage deals, real estate deals, oil and gas leases, promissory notes in startup companies, and housing for the homeless. But in reality they are empty promises with nothing concrete to show for them. [br][br]These investors are very shady. They claim to be registered in one state, but actually have a physical presence in another state. The problem is they sell to seniors in other states of which they are not licensed or registered. They do this on purpose because they think seniors will not investigate them, considering they are so far away. [br] |
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