Over the past few months, it seems as though there have been a handful of multi million dollar (or even several billion dollar) ponzi schemes busted. We have seen Madoff's scheme get busted for apparently taking $50 billion in investors funds. The latest scam, Stanford Financial Group, isn't accused of being a Ponzi Scheme but was an investment scam that allegedly had millions invested in Madoff's Ponzi Scheme.
There will always be Ponzi Scheme running, and there will always be people willing to put a large chunk of their life savings into these programs. For example, Philadelphia Phillies' Relief Pitcher Scott Eyre had literally all of his liquid cash in the Stanford Financial Group when it was shut down. Most people get involved in these schemes through referrals from friends, family members and even business partners.
For those of you who are considering investing in a lucrative investment that was suggested to you by a friend or family member, ask yourself this; "Does this investment seem too good to be true?" If you answer yes then it most likely is. All investors should always use one rule in deciding where and how much to invest. The greater the return promised on your investment, the greater the risk is to you in losing your money. This is true 99.9% of the time whether investing in Stocks, Bonds, Forex, Real Estate, or an investment scheme.
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