Editor:
Indeed, the tentacles of a world-wide Ponzi scheme extended into the Sunshine Coast in 2007 as reported in Coast Reporter, Sept. 25. And, to my knowledge, some trusting but naïve people got caught out in the scheme and probably lost some significant money.
It's clear we are living in a time when many individuals are susceptible to scams. Yet, as the details emerge from the sordid stories behind Bre-X, Bernie Madoff, the Nigerian scam, this IFFL Ponzi and many others, an unfortunate pattern can be seen. Most people, when they got the pitch, were bowled over by fear (of losing out) and an irrational trust that these schemes would work out, despite the warnings from many professional advisors that they were not sound investments.
If you are thinking of investing your money in a high-risk venture, then for goodness' sake, do your homework to verify that the investment is sound and that you are certain you know how your investment is going to be spent. If you don't know this, then you are susceptible to fraud, and you should either bow out or get informed. Investigate and don't be satisfied until all your questions, no matter how simple, are answered to your satisfaction.
There are many credible high-risk ventures out there that need investors and, while there's no such thing as a sure thing, you can improve your chances of finding one you are comfortable supporting with a little extra effort, which might include an appointment with a financial advisor.
Whenever someone falls prey to one of the myriad scams making the rounds, the loss to an individual and their family can be very harsh. But our society is also a big loser in these situations, and I urge governments to do more to help protect citizens from these mudholes.
Michael Maser
Gibsons
