Investment Articles

How to Avoid the Scam

Safe keeping receipts can be deceiving. They give off the idea of being safe because they have the word “safe” in their name. In their original form, they really only give access to assets that have been put away for safe keeping. However, an investment market has sprung up over the years. In doing so, leasing safe keeping receipts has become prime ground for con artist to defraud investors. This is due to the fact that they are able to convince investors that their assets are “safe” due only to the fact that the word “safe” is in the name.

Leasing SKR can be a legitimate form of investment if handled properly. However, it is somewhat tiresome and not nearly as profitable or easy as other areas of investment. The trail begins when an owner of an asset desires to put that asset somewhere for “safe keeping.” Another option other than a safe deposit box is to take the asset to an institution that issues this types of receipts. These institutions take assets and put them away, issuing a document called a SKR to the owner. This receipt is only to prove that they are the owner of the property and it is the key to gaining access to the assets.

Over the years, these receipts have become negotiable instruments. This means that their ownership can be transferred. In doing so, access and therefore ownership of the assets are transferred. In this way, they can be monetized, turning them into legal tender. Leasing SKR is when the owner of the receipts accepts payments monthly for letting others use receipts as collateral. It gets very confusing, and this is what allows fraud to take hold. Those who do not understand how the receipts work can be easily conned.

The scam begins with a con man posing as a broker. He convinces the asset owners to issue a SKR and give him the power of attorney. He may also suggest that the owner get another safe keeping receipt on the original receipt. This does absolutely nothing but give the asset owner a false sense of security. The “broker” now has complete access to the asset, whatever it is. The theory is that he is to only access it for investment purposes, but as he is dishonest, this is likely not the case. To avoid a situation like this, check out a new broker thoroughly using every resource available. For more information on investing in investment opportunities usually or normally not found in the marketplace, click here!

Sean Johnson is an Investment Advisor for http://www.inquest.biz an Investment Referral Service for investors requesting information on specific investments.

The key to making a great investment is to find something that everyone uses, and will continue to use. If you can invest in something that has high profitability, you are pretty much guaranteed to turn a profit. Everybody needs toilet paper, and everyone needs energy. Society is pretty much dependant on energy, it makes the world go round. Currently, the world is in an energy crisis. Many countries are endeavoring to come up with a more sustainable source of energy and they need lots of help to do it. If you are into investing to make a difference as well as turn a profit, investing in energy is a great option.

There are many options when it comes to investing in energy. You could invest in utilities companies or you could invest in energy research and development. It has long been established that oil makes a great investment. It is a sound investment because the world depends upon oil for transportation and many other elements of daily life. But alternative energy sources are beginning to make a showing in the investment realm. Yes, you will be a hero for investing in something that matters and makes a difference in our world. Yes, you will be forwarding the purposes of responsible living and renewable resources. But you will also be able to make a profit.

In 2009, solar, wind, nuclear, biofuels, and renewable were serious contenders in the investment market. Solar power, for example, which has not done well in the past, is beginning to make a turn around. There is not a lot of money to be had in solar power at the moment. But with all the hype around better energy solutions, it will not be long before solar energy becomes very profitable. As demand increases, so will the profits for investors. The same will happen for wind and other alternative sources of energy. Investing in energy is a place where forward thinking investors can get in while the prices are low and make huge profits when the energy market booms.

Two places that have taken serious hits in recent years are natural gas and uranium. In 2009, they both nearly fell out the bottom and are making very slow recoveries. It is not expected that they will go much lower, but they may not recover to their former glory. Investing in energy is a field about to burst open.For more information on investing in investment opportunities usually or

normally not found in the marketplace, click here!

Sean Johnson is an Investment Advisor for http://www.inquest.biz an Investment Referral Service for investors requesting information on specific investments.

Investments for beginners is on one hand quite simple. It is largely about finding somewhere to put your money now in return for a larger amount in the future. On the other hand beginners need to do their homework very thoroughly. Completing your due diligence and getting sound advice has never been easier with the online information readily available. Check out some unusual options as well as the more well known investment vehicles. Remember, keep asking questions until you get satisfactory answers and research many options in your budget.

You may think you have never invested but aside from the family home you possibly have purchased the odd item hoping it will appreciate in value. Well that is really what investing is all about. Making a good investment is all about finding somewhere to put your money now in return for a profit at some time in the future.

To get the kind of results you want, it is important to try to determine what time frame that future time falls within and whether the investment need to produce fast income or growth or both. Even then there are many variables. Take property as an example. It is really considered to be a medium to long term investment as there are high costs involved in most countries when purchasing – so the growth has to outstrip those expenses before it even makes a dollar.

However in a very ‘hot’ market a lot of small and large developers for example will get into the market and out again whilst it is still rising but is peaking, or they want to cash up for another development. Others will buy when they feel the market is undervalued and about to rise.

The same thing is really happening in most investment markets when you look at them. Brokers will advise on particular shares at particular times. It is crucial to ensure that you check out sufficient financial advisers and their track record before taking advice. Finding does require research on your part.

Some investments however can be quite spectacular just by doing some homework on a fairly small niche – a particular type of pottery is an example. Fortunes have truly been made overnight by people who have an eye for a real antique or a rarity that has value. It must be quite exciting to make more money overnight this way than to watch share prices go up and down and simple car boot sales have produced exciting rewards for total beginners on many occasions.

Norma Kirkland invites you to find more useful information at http://good-investments.net. The site is updated most days with useful information. If you require further information please drop an email once there.

You may also care to call in to http://greenplanet.com too and email support for Del (Deree) Reid currently held in Kenya for almost two years on false charges after saving a female from a vicious attack whilst on holiday. Thank you.

Is profitable trading still a hazy dream to you? Like thousands of traders and investors, gaining substantial profits in the market of your choice could still be an elusive dream to you. It’s possible that you might not be getting it because you don’t have the right tools or elements that could spell the difference. Here’s what you really need to start trading successfully.

Right Psychology

Psychology plays a direct and important role in trade outcomes but many investors don’t even realize this. They may enter positions and get too caught up in their emotions that they end up holding on too long or letting go too early of a position. This emotional approach is the first step to losing your chance to gain trading profits. The right mental and emotional mindset is to approach trades with logic and reasoning based on an established system or plan of attack.

Proper Market Selection

There are many different kinds of investment markets. Some think that the fastest way to earning a lot is to invest in every single one of them. This is one of the worst mistakes any trader can make. Although it is not impossible to one day have a diverse portfolio, beginners should not start their careers by dipping into various markets all at once. It is far more sensible to concentrate on one market first so you can master it and make the right decisions that will permit profitable trading.

Solid System

If businesses need systems to run smoothly, so do market investments. In fact, this is the first thing that seasoned traders establish. A plan or system is simply a set of rules set-up to guide trader decisions on when to enter or exit trades. Once you have a plan in place, it’s important to commit to follow it no matter what happens. Your system and your commitment to it are the real secrets to preventing emotional investing.

Money Management Rules

Rules for money management are covered by trade systems but they are so important that they deserve special mention. These rules are what prevent you from having to go through substantial losses. Once they are in place, you never have to lose more than is acceptable to you. Your set of rules should include specific details on your trading float, maximum allowable loss, initial stops and preferred trade size.

Charting Software

In this day and age, every trader needs an investment charting and analysis package. These are typically quite expensive which is why you need to make sure that you make the right choice. Pick one that has been around for a long time because this will give a higher assurance that it will not disappear along with its support system in the coming years. Other important qualities to look for are flexibility, market scanning ability and independent data plans.

There is no doubt that profitable trading can be within your reach. You just have to take pains to make sure that you have all the right tools and elements in place. Start by adopting the right frame of mind and then move on to developing your own system to use with a good charting package on the right market.

Want To Learn How To Create Your Own Trading Plan?
Visit http://www.freetradingsystems.org For Details.

Online investment strategies can include a wide variety of options. Online brokerages and other websites enable anyone of legal age to engage in buying and selling stocks, bonds, currency, commodities, and precious metals. Because investing online is both easy and risky, if you are inexperienced with trading, take every precaution, research well every investment firm and every investment prospect, and invest slowly and with extreme caution. Learn about investing and formulate your investment strategy before spending your hard earned money.

Investment Markets
Before spending the first cent in an online investment, ensure you know precisely the type of investment tools that suit your investment outlook, short term and long term financial goals. The categories of investment vehicles include:

Capital Market: Where governments and large corporations raise long term funds. Those providing capital meet those who provide securities, and trades are made, each side hoping it will make money. Capital market investments include stocks, bonds, mutual funds, options, Treasury bills, and more.

Commodity Market: Investors in the commodities markets enter contracts on such items as agricultural products including fruits, crops, livestock, coffee, soybeans, and more, as well as precious metals-raw or primary products. Most commodity contracts usually pivot on future prices, such as a springtime purchase on winter wheat.

Foreign Exchange (Forex) Market: Anchored completely in buying and selling currency, the Forex Market has a direct impact on the value or strength of each country’s currency. Inflation plays its part, but as with all investment vehicles, the amount of investment interest and activity in a currency–how much is purchased, and the price an investor is willing to pay-influence how much one currency is worth in relation to another.

Money Market: A traditional or online investment in the money market involves trading securities with a maturity of less than one year.

Real Estate Market: While investment strategies that include buying real estate online are not quite the same as other online investments, searching for real estate for sale can easily be conducted via the Internet. If interested in investing in this market, look for good values in land and land improvements permanently affixed to the land. Before purchasing, however, ensure you conduct due diligence on any property that catches your eye. Common real estate investments include solely land or commercial, residential, or industrial buildings.

Cautionary Points
Regardless of what type, method, or amount of investment you want to make, never invest any money before you thoroughly investigate for yourself the opportunity that you find. Don’t automatically take the word of someone, simply because he or she may have a license. There are different types of license, and while legal, not all are issued by the Security Exchange Commission.

Read ‘opportunity’ emails with a jaundiced eye, if at all. Report spam to the email provider. If you sign up for an online investment e-zine or newsletter, do so with the foreknowledge that it may increase unsolicited emails from others.

Most importantly, never invest blindly or automatically. Keep control of your money; don’t allow others to manipulate your investment dollar without your expressed and per-instance authorization, and make sure you articulate permission or denial in writing. Formulate an investment strategy and stick to it.

Summary
Regardless of the market in which you opt to implement your online investment strategies, remember to start small, start slowly, and never invest more than you can afford to lose. While not the intent for most investors, there is no guarantee that any investment you may make will make a profit. But with study, patience, and a bit of luck, it just might.

Danielle Taylor writes out of New York about different personal finance tips and online investment strategies. Always looking for the most favorable investing options, she tends to end up planning her finances at http://www.firstrade.com more often than not.

The Trustee Act 2000 makes it clear that trustees are required to obtain and consider investment advice from a person they consider qualified to give it. This makes a great deal of sense but how does it work in practice?

The first job of the Investment Adviser is to help the trustees to prepare an Investment Policy Statement. This statement is intended to clearly identify what the proposed investment is required to achieve, over what time period, and how performance will be assessed in the future. A typical Investment Policy Statement will include the following:-

The overall level of return expected and minimum yield required
The income or capital requirements
The nature of timing of any liabilities
The liquidity requirement, including dates of planned expenditure
The marketability of the investments – important if income needs to be raised quickly
The time horizon of the trust – less than five years or long term
The time horizon over which performance will be assessed
The residence and tax status of the trust and the beneficiaries
Any socially responsible investment constraints
Other tax and legal constraints

Once agreed with the trustees, the statement will help the adviser in devising a strategy to generate a sufficient return to fulfill these objectives over the short, medium and long term.

Investment Risk

In an ideal world, trustees would expect a competitive and rising income with no risk to capital. In the real world however, interest from deposit accounts will not even match inflation. This means that the assets of very many trusts are guaranteed to go down in real terms. To protect trust assets against inflation and/or to generate a reasonable income in the current climate, some investment risk has to be accepted. Whilst cash that will be needed in the next year or two will have to be kept on deposit, money not earmarked for short term expenditure should be invested in a professionally designed portfolio of assets such as equities, gilts, corporate bonds and commercial property. The investment adviser will be able to suggest a portfolio to fulfill the objectives within the Investment Policy Statement and to explain the risks involved. It is for the trustees to decide if that level of risk is acceptable or whether the stated growth or income requirements were over optimistic. A degree of compromise is often required before an investment portfolio is finally agreed upon.

Investment Management

The size of the required investment largely dictates how the portfolio will be managed. This is because a major factor in reducing investment risk is diversification. As an example, investing in a portfolio of 40 or 50 shares carries much less risk than investing in just one or two. This means that smaller amounts might be directed towards collective investment such as unit trusts or investment trusts which can provide the required spread. There is often a combination of the two approaches with UK investments being directly held and foreign investments being in collectives. This is because the UK portion of a portfolio is invariable larger than the amount invested in (say) the USA or Europe.

Designing a suitable portfolio is only the start of the process. As different assets grow at different rates, the risk profile will move away from where it was originally set. For example, a typical portfolio might be invested 40% in equities with the balance in cash and fixed interest securities. If stock markets have a good year, the equity content might grow to 50% or more and the risk profile will have increased. A process needs to be established to regularly monitor and adjust the risk profile of the portfolio. The day to day management of larger portfolios, including rebalancing to maintain the original risk profile, is often passed to a discretionary fund management company. The role of the nominated Investment Adviser then becomes one of helping the trustees to evaluate the performance of the Investment Manager against the benchmarks agreed in the Investment Policy Statement as required by the Trustee Act 2000.

Independent Advice

To obtain impartial advice on the entire investment market, trustees should deal with an Independent Financial Adviser. There will than be no concerns about their recommendations being tainted because of access to a limited range of products or funds. Similarly, an Independent Financial Adviser will have no compunction about replacing an under-performing fund manager in the future – whereas an adviser working for the same company might not be in a position to do so.

Mike Wilson is a director of Scottsdale Consulting Ltd, having entered Financial Services in 1985 he specialises in pensions and investments, as well as expat services. He has a wealth of experience advising clients and in training other financial advisers.

The best investment strategy for 2011 and beyond will vary from traditional investment strategy for good reason. Today’s investment scene and economic conditions are anything but normal. Here we look at today’s exceptions to the norm and the best ways to protect your investment portfolio going forward.

The best long term investment strategy typically recommended in the past for average investors: allocate about 55% to stocks and 40% to bonds, with the remainder going to safe investments. Sometimes real estate or gold were thrown into the mix. For the most part, this strategy worked. For 2011 and beyond it’s time to think twice about asset allocation and your specific investment options in the five areas mentioned above. Some are skating on thin ice; while others are headed where few of today’s investors have ever been before.

The good news is that average investors can put together an investment strategy best suited to the new economic reality by simply investing in mutual funds. All five of the above investment options and more are available in funds. Plus, funds come complete with professional money management and plenty of flexibility. Once you’re with one of best fund companies you can easily make changes to your portfolio free of charge. So, let’s take a look at some of the exceptions to the norm or extremes that exist today. Then, we’ll suggest changes to consider for 2011 and beyond in terms of mutual funds, starting with safe investments and ending with gold.

Safe investments pay interest and don’t fluctuate in value. The best in class here for most investors is still money market funds, where the interest you earn automatically changes with interest rates. Thirty years ago interest rates peaked and have since basically been falling. Then, you could earn close to 20% with high liquidity and safety in a money fund. As 2011 unfolds you’re looking at more like.1%. Both of these rates represent DRAMATIC extremes or exceptions to the norm. Few of today’s average investors have experienced a significant upward trend in interest rates. Prepare for this possibility. Your best investment strategy here is to keep 10% to 20% in money funds.

In pondering your best investment strategy with bond funds picture yourself skating on thin ice. That’s what people who loaded up on bond funds to get higher interest income for 2011 and future years are doing. Lighten up here in general and avoid or get rid of long-term bond funds. They pay higher dividend yields (interest) but will take a major hit when interest rates head north for real. The extreme situation here has been bond prices, which became very high as a result of investors bidding up prices in a bizarre low-interest-rate environment. The best investment options here for most folks are short-term and intermediate-term bond funds. You will make less interest income vs. long-term funds, but you will have much less exposure to losses if the ice cracks and bond prices tumble.

The financial crisis and recession are officially over, but the stock market hesitates in its attempt to reach new highs for 2011 and beyond. Economic growth has been in question as unemployment stubbornly remains at high levels relative to the norm. This situation is unusual for an economic recovery; but don’t speculate about the future of stocks and don’t avoid stock funds. The best investment strategy here is to favor general diversified stock funds that invest in high quality, dividend-paying U.S. companies vs. smaller less-stable companies that pay little in the way of dividends. Then diversify even further with international funds to spread out your risk. In this way you will participate if stocks continue to struggle upward, but you shouldn’t get hammered too severally if they don’t. Your best stock strategy if you lean to the conservative side is to lighten up on diversified stock funds in general.

As a financial planner I often recommended both gold funds and real estate funds to average investors, even when traditional investment strategy all but ignored these investment options. Both of these funds add additional diversification and balance to a portfolio. Both have also experienced changes in character in recent times that deviates from past norms. For years real estate funds were steady performers and paid handsome dividends. They were clobbered in the recent financial crisis and recession. Even with a 4 ½ % mortgage rate the real estate sector lacks gusto in turning around, but at least realty prices are not excessively high. The best investment strategy here if you believe the industry will recover in 2011 or beyond: put 5% to 10% in a real estate fund to further diversify your portfolio.

Now let’s talk about the last extreme in today’s investment scene, precious metals. If you think that today’s infatuation with gold is normal, here are some historical lows and highs for an ounce of gold, in round numbers, you should look at. From a low of $100 in 1976… to a high of $850 in 1980… and then down to $250 in 2001. Since 2001 began, gold has glittered, with its price pushing through $1400 in December of 2010. In that same time period stocks struggled. Don’t push your luck in 2011 and beyond. Gold and gold funds are not a growth investment and are anything but safe at today’s prices. Your best investment strategy is to cut back if you have money here, and to stay away if you don’t. Gold has become a speculation vs. a traditional hedge against inflation, which is presently mild by any standard.

Getting more aggressive is sometimes the best investment strategy… like when prices are hitting extreme LOWS in the investment markets. For 2011 and beyond it’s best to focus on the extremes that could spell trouble in the future as they unfold… like extremely low interest rates suddenly climbing significantly. Protect your investment portfolio with a good defense, diversify across the board to deal with uncertainty, and live to invest more aggressively another day.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

Exchange Traded Funds are a popular investment vehicle for mainline investors these days. They represent a convenient way to participate in a given class of investments, which resembles a mutual fund in a number of ways. However, the fund trades more like a stock and doesn’t have all of the drawbacks mutual fund investors routinely complain about.

In the world of precious metals investing, there are indeed ETFs available. While some vehicles may track a cluster of companies, such as junior mining companies, for example, others will track underlying commodities such as natural gas, uranium, or precious metals. Two of the more popular vehicles are GLD for gold investing and SLV for silver investing. As for the latter ETF, silver investors find this appealing because it is a way to “play” the silver bull run with ease. Think about it this way. With just this one ETF, silver is now a portion of your portfolio and you’ve avoided all the mutual fund pitfalls.

Moreover, there’s greater allure still. With the SLV ETF, silver can convey profits to you without you even knowing the name of a single mining company that produces an ounce of silver! You may not even know what the spot price of silver is. And you may not have the foggiest idea where you’d even buy physical silver apart from your neighborhood jewelry store.

This all sounds great. However, as they say, all that glitters is not gold. And it may not be silver either. From my perspective, when you invest in the SLV ETF, silver may not really be in your portfolio after all. For starters, you obviously do not have physical silver; you have a digital entry in your online brokerage account. “Big deal,” you say, “so it is with all of my holdings.” Fair enough. So, let me ask you a question. If you go the route of ETF silver investing, what exactly do you have?

Here’s the problem as I see it. Frankly, the silver market is extremely tiny. It’s estimated that only about 600,000,000 ounces of silver are produced annually. That may sound like a lot, but I want you to consider two important points.

On the one hand, note that the vast majority of production is consumed by industry, since silver is an integral part of everything from dentistry to electronics and beyond. When all is said and done, there might be 100 million ounces left for investors. That means that, if everyone in the United States wanted a 1-ounce silver round this year, only 1 out of every three people would even get one. A full two-thirds of us couldn’t even get our hands on one stinking coin! Are you starting to see the picture?

Now, on the other hand, let’s look at it in hard numbers. At $20 an ounce, even a generous 100 million ounce allotment for annual silver investment would put the silver market (for investment purposes) at 2 billion dollars. At $30 an ounce, we’re at $3 billion. And even $50 an ounce for silver would make the silver investment market just $5 billion. That’s really small.

I hope you can now appreciate just how minuscule, in relative terms, the investment market for physical silver really is. Now, we can go on from there to ponder a few things. A for the SLV ETF, silver is supposed to be a core holding, right? In other words, SLV is designed to track physical silver prices. So, as for any real, tangible assets that might exist in the SLV ETF, silver should be high among them. However, we can know definitively that the SLV is not gobbling up all available investment silver. After all, I have some of it!

So how much of the generously estimated 100 million ounces each year is SLV adding to its reserves? How does that figure compare to the market cap of the SLV? See the problem? When there is movement in this ETF, silver is supposedly the driving force. But how can SLV justifiably rise in concert with physical silver if there is not enough physical silver to back it? How is ETF silver investing any different from the fractional reserve fraud of the fiat money system the Federal Reserve operates, which has led to the massive decline in purchasing power of the “dollar?” What would happen if everyone in SLV started to demand redemption and wanted the real thing instead? Isn’t this why the Federal Reserve no longer issues Silver Certificates?

ETF silver investing reminds me of a game I used to play as a child. What was it called? Oh, yeah: Musical chairs.

Want more useful information on ETF Silver
investing, and how to not get left standing? J. Scott Talbert is an Estate & Financial Planning attorney and precious metals investing aficionado. Visit his Resource Investing website at http://www.miningstockdepot.com
today and get your $440 Unadvertised Bonus and Consumer Briefing Advisory Report free!

For anyone who has one eye on the investment markets, it is impossible not to notice just what an important role gold bullion coins have to play. There are obviously all sorts of gold commodities which can be invested in but it tends to be coins that the savviest of investors turn to.

Gold bullion coins are not only an incredibly worthwhile venture from a return on investment perspective – they are also highly visually appealing and collectible in their own right. Many people like to add gold coins from all over the world to their investment portfolios – such as the American Eagle coin from the United States or the eye catching Golden Panda from China.

What to Consider Before Buying

It always pays to be cautious when it comes to any form of investment and keeping an eye on the gold markets is also extremely prudent but, so far as investments go, they seldom come much more reliable than gold bullion coins. Such is the demand for such products, and the fact there is only a finite supply of the precious metal, means that the price of gold in general will only head in one direction in the long run – and that is upwards.

Gold investment is nothing new and people have been doing it for years. The fact it is one of the cornerstones of the investment and has been for decades, gives investors an additional level of peace of mind when they decide to invest in gold coins. In order to find the widest selection and best prices for gold coins, the majority of investors will search online as this will provide them with gold products emanating from all over the world that they can invest in.

Gold bullion coins are something that thousands of investors will add to their portfolios each year and for good reason. If you comprehend the fact that this type of commodity be viewed as a medium to long term investment, you are likely to do very well out of it financially.

For the finest choice in gold bullion coins, visit the premier site UK Gold Bullion. Great prices and superb customer service! Go there today – http://www.ukgoldbullion.co.uk

The Ponzi fraud was named after Charles Ponzi who made millions early in the twentieth century by attracting investors in the USA to part with their money on the promise of high returns. he kept the victims coming by paying returns out of new investors’ funds. The biggest Ponzi fraud was committed by New York financier Bernie Madhoff who conned his victims out of £40 billion. He was jailed for 150 years in 2009 but this does not help the thousands of investors who lost their money.

Ponzi frauds are often dressed up as investment clubs, offering higher than expected rates of return to a select few who are invited to join. It is astonishing that these schemes continue with all the publicity surrounding the frauds that eventually come to light. These are classic frauds of course, relying on the persuasive abilities of the fraudster who comes across as a competent and respectable businessman. A Ponzi fraudster will build trust with his victims. He will select a sector of the community where he can easily establish a rapport. The word will get around that there is a genuine scheme that is paying high dividends and many will flock to invest. The fraudster simply pays out interest to the investors out of the fresh funds that keep on coming in, thus gradually eroding the capital funds that are not really invested at all.

Eventually such a scheme will collapse – it is inevitable. At some point one or more investors will decide to withdraw their funds, perhaps becoming suspicious. The pot of available funds for paying interest will no longer be available to give the impression of healthy investment returns. At this stage the fraudster will no doubt attempt to flee to some offshore location where he has salted away a large proportion of his takings.

The trouble is that the whole idea of the Ponzi fraud is based on a myth arising after the Second World War. Then a small band of altruistic investors banded together to help rebuild Europe after the devastation. Hugh sums of money were invested and the returns turned out to be enormous. The funding opportunity was restricted to a select few and the idea of being invited to an alternative investment market was born. The idea still persists and is exploited by the unscrupulous criminals. However, who knows, there may still be some truth in an investment club for the mega rich?

Mark Jenner is a forensic accountant specialising in fraud problems. He assists companies and other organisations to prevent and detect fraud and to recover stolen assets. He is a Fellow of the Institute of Chartered Accountants, a Certified Fraud Examiner and holds a Masters Degree in Fraud Management.