How to Spot a Ponzi Con Artist? Follow the Yachts
With so many http://www.time.com/time/business/article/0,8599,1866680,00.html" target="_new">Ponzis and so little time to know if you've been hoodwinked, there are some red flags even the most trusting investors can bank on: yachts, mansions, jets and women. If your investment adviser is dabbling in any of the above, there's a good chance you've been "Ponzi-ed" or are about to be.
Creating the illusion of fantastic success, of course, is chapter one in the Scammer's Handbook. But many, like http://www.time.com/time/business/article/0,8599,1880101,00.html" target="_new">R. Allen Stanford and http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877337,00.html" target="_new">Bernie Madoff, among the most egregious alleged billionaire bamboozlers, are taking the art of thievery to the next level. Some don't even bother opening an investor account when new monies come in, they just go shopping. It's enough to make Gordon "Greed is Good" Gecko blush. (http://www.time.com/time/specials/packages/0,28757,1877351,00.html" target="_new">See 25 people to blame for the financial crisis.)
Take Stephen Walsh and Paul Greenwood, operators of Westridge Capital Management, with $1.3 billion in assets, who last week were charged by The Commodity Futures Trading Commission for allegedly "misappropriating" at least $553 million for either personal expenses or to cover trading losses. The CFTC is the sister agency of the Securities and Exchange Commission and covers fraud in the commodities, futures, and foreign exchange markets. (http://www.time.com/time/photogallery/0,29307,1873974,00.html" target="_new">See pictures of the demise of Bernard Madoff.)
