Even More Scams

by | Feb 26, 2001 | Archives

I have witnessed hundreds of scams during the past thirty years. One remarkable fact is that even when potential suckers are told how they will be robbed, they still invest! Protect yourself by reading the story below which explains why.

Here are two more letters I just received after writing about scams..

#1: ” Gary, I have made MORE than 10% per month over the course of a year in some of these investment clubs and have been paid! Is it possible that some of them are legit? Thanks for keeping us informed. Bob”

#2: About your Scam alert that you send us today, even if you don’t seen to belie it, is it possible that some investment could give this kind of returns (between 10 and 30 % a month)?

I have a friend that is telling me that he is making an average of about 15% a month (I saw several checks). Confident of these returns, the same friend is been tempted to invest in an other club (diversifying is his goal) who offers 20.5% a month. By the way, I am not sure where this club is from.”

Here is my reply to both these letters,

I have so many scam stories that I cannot give them all to you at once so I’ll post them in our scam forum one at a time.

Let me be clear. Most of these clubs and similar schemes are Ponzi schemes. The con artists operating them pay out money coming in from new investors to existing investors. The pay our is their form of advertising! This works for awhile until the bubble bursts. The con artists want to give you checks so you will talk to others about your huge profits. Your friend may have received some checks. He may receive some more. If he is lucky he may even get his money back before the thing collapses, but collapse it will.

Here is my first scam story which took place when I was working and living in Hong Kong. Two guys came into town allegedly experts in trading commodities. They promised to make 15% to 20% per month for their clients. They did-for awhile. One of my clients (his name was Dwight) invested and nothing I could say would convince him that these guys could not make that kind of profit again and again for a large group of investors.

Finally the Hong Kong fraud squad investigated and investors became nervous. Dwight and a friend of his both asked for their money back. Both received a check. They rushed to the bank and deposited them. Dwight’s friend’s check went through. Dwight’s check bounced. The two promoters had fled and hundreds of investors lost millions. I’ll add more of these stories over upcoming months but the theme of each is the same. New unknowns come along offering huge returns. Sometimes they are experts in commodities, other times industrial wine (doesn’t exist) other times discount groceries, etc. A few investors get in and make huge returns. Many investors jump in and all make a bunch for just a while. The second the deal slows down or is investigated, it collapses leaving millions short.

Investors beware!

My novel the 65th Octave (details on how to order are at the site) cover this. The hero is a scam catching expert working for big banks. The book outlines why scams work and why suckers always lose. I recommend you read the book. It has some in depth economic information but is also a fast paced, fun read.


Scams – scams – scams. The internet has become one of the favorite vehicles for con artists. You must beware and protect. The International eClub we have a board of experienced advisors, ethical attorneys, bankers and businessmen who can help you spot and avoid scams. Learn more at the scam forum posted on our site.