Jeff Golden
This edition of SOUTHERN OREGON TOWN HALL is aimed at helping viewers avoid investment fraud by exposing some of the common tricks and deceptions.
Program premiered LIVE on Tuesday, February 22 at 9:00 p.m. immediately following TRICKS OF THE TRADE: Outsmarting Investment Fraud.
* Required fields.
Please review our Terms of Use, Privacy Policy, and Community Guidelines.
(5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5)
Find features and companion websites for hundreds of PBS programs and specials.
Come play with all your favorite PBS KIDS characters!
Get ready to GO! in our new place for big kids!
Find games, activities, and parenting advice for raising your PBS Kid!
Tips and tricks for making reading a fun, easy part of every day life.
PreK-12 multimedia resources and professional development from PBS.
Mr. Golden,
I am very happy to see that you are doing this show. I have been representing investment fraud victims for 25 years on a full time basis, and every tiime we get a new client I wish I could have been there when they were making their investment decisions. (For some reason, in the last couple of years have seen an increase in clients from Southern Oregon.) I have investigated and represented victims in Oregon in about every kind of fraud. The sad thing is that in 95% of the cases, we could have told the victims immediately upon seeing the investment offer not to do it. Most frauds cand be avoided if investors follow some basic, easy to follow rules:
1. If it is sounds like an unbelievably good deal, don't believe it. Advisors who promise returns above what the market is paying -- either in growth of an investment or interest or dividends -- are either not disclosing the high risk of the investment, or are outright fraudsters. For example, we know that interest rates today are very low, under 5% for quality fixed income investments. If someone promises you 10%, don't walk away -- run away.
2. If you are told you have to make a decision immediately or the offer won't be available, let it go. Don't succumb to high pressure sales tactics. They are an indicator of fraud
3. Don't buy something you don't understand. It could be a legitimate investment, but why take the risk? Many people are told that an investment advisory firm or fund can guarantee a high return because of some special secret investment strategy. The markets are very efficient. 99.9% of the time, these special strategies are flawed and will fail. If someone is smart enough to have figured out how to beat the market, they won't need to sell it to you.
4. If you can't sell your invesment whenever you want to, be wary. Unsophisticated investors are sold "private placements" that pay very high commissions to the salespeople but there is no secondary market for them. If the investment starts underperforming or failing, the investor has no options. Two recent examples are investments called DBSI and Medical Capital. Both are now worthless, and Oregonians lost millions of dollars. These investments can sometimes pay a good return, but the risk is high, the fees are high, and you can't get out. They are not generally suitable for retirement savings. Invest in things you can understand, you can sell if you need to, and preferably, you can look up the value of the investment in the newspaper or online.
5. We have seen a rise lately in brokers from out of state -- typically Florida and New York-- calling Oregonians and convincing them to open stock brokerage accounts. They typically sell low price stocks, and at least in the cases we see, the investors lose most or all of their money in less than a year. Unless you have a personal relationship with a financial advisor from out of state, there is no reason not to use a local advisor.
I am sure you will have some quality financial advisors on the show who will talk about the importance of saving and asset allocation. That is what people need to learn. Brent Hunsberger at the Oregonian has written some great articles on this recently. It is not difficult to understand, and if people followed it, I'd be out of business, and could spend more time fishing, which would not be so bad.
Will this program on Investment Fraud be repeated anytime soon?
This program last aired on February 27. There are no other air dates scheduled, but it will likely be part of our schedule again sometime this year.