The much talked about Ponzi schemes are still going on. Every year it seems there is a larger scam that leaves unwitting victims penniless. Honest financial advisors often find themselves on the defense. Though you might be an upstanding citizen out to help your fellow Americans make money, people hold you in suspicion.They are afraid of being the next "sucker" on the TV news crying about losing it all to a fraudster.
What can a new financial manager do to survive? Well, take an honest look at your operation. Do things appear to be legitimate?
To help you succeed in your chosen profession, following are some of the characteristics of a Ponzi artist to avoid.
The financial markets go up and down, almost on a whim. Investors with too good of a track record should give potential clients pause. Just how is this person always getting it right, they wonder?
Always be honest about your investments. If you have done surprisingly well, then inform clients just how. If things have been rough, then explain that as well. Many will trust you because of your upfrontness.
Sorry, but investors fear the newbie. You have to get some experience before people will trust you with their money. Think about starting an investment club for family and friends. Get some experience and recommendations and then open up the commercial office.
Slow to Pay Out
Those out too deceive their customers often use investment funds to finance operations. Unlike a real business that has cash upfront, they instead depend on new clients to stay afloat. Oh, yeah, and when an existing client wants to cash out, the Ponzi schemer gets uptight.
Now, perhaps being new in business you may be similarly hesitant to cash out accounts. After all, you have few clients at the start. Nevertheless, always be forthright about the withdrawal process. Someone who believes you reluctant to pay them may spread word that you are a Ponzi!
Heavily Involved in Emerging Markets
True, emerging markets, those economies on the rise, provide a wealth of investment opportunities. In most cases, they also have fewer financial regulations than at home. Fraudulent investors can take advantage of the lack of transparency abroad.
You must be careful if heavily involved in emerging markets. Clients who lose money might begin to think your business is less than honest. Always explain overseas investments in detail to avoid the appearance of impropriety.
If Accused Speak With a Criminal Defense Lawyer Fast
The simple reality is that since the last recession there has been increased monitoring of financial activity, especially when done online. You must be aware that at times unfair accusations arise.
If you look like a Ponzi, somebody might begin casting aspersions. Contact a criminal defense lawyer, like the Law Offices of Michael K. Tasker, before things get out of hand. This legal professional can help you clear things up and get back to business.