Ponzimonium: How Scam Artists Are Ripping Off America (ePub eBook)

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***Click on SHOW MARKETPLACE EBOOKSELLERS for purchase options from third party sites like Apple, Google, Barnes & Noble, etc.*** Ponzimonium: How Scam Artists Are Ripping Off America, tthe award-winning CFTC book on infamous con artists and their investment frauds and how consumers can protect themselves from them, is now available as a FREE eBook either via immediate purchase and download from this US Government Bookstore site or from selected third party eBooksellers by clicking on the red SHOW MARKETPLACE EBOOKSELLERS button on this page.

Fortunately, more than ever before, con artists are being apprehended and prosecuted.  Federal, state and local law enforcement officials have reported enormous increases in tips and criminal activity since the economic calamity began in 2008.  Cash redemptions are dangerous for Ponzi schemes, because when the money runs out, folks start talking.  For example, at any one time, enforcement staff at the U.S. Commodity Futures Trading Commission (CFTC) are investigating anywhere between 750 and 1,000 individuals or entities for various violations of the law.  Increases in tips and fraud cases have also occurred at the U.S. Securities and Exchange Commission (SEC), at the Federal Bureau of Investigation (FBI), in the states, and various localities around the world.

The compelling stories in this book are actual CFTC cases stemming from investigations that began with the economic downturn. These are real cases, real fraudsters, with unfortunately . . . very real victims.  While, the fundamental nature of the writing in such files is, as you would imagine, very bureaucratic:  this script is anything but bureaucratic. Filled with details, the cases even show photos of ill-gotten gains of the criminals.

NOTE: Extremely valuable to consumers and investors are the consumer investment resources at the end of the book: Investors’ Bill of Rights, Red Flags of Fraud, Resources and Investor Checklist which advise consumers what to watch out for to avoid being scammed themselves.

Author and CFTC Commissioner Bart Chilton has worked in public service for over a quarter of a century and has found that one of the most important things that can be done is to make government less puzzling and perplexing, less mysterious, and yes, less bureaucratic.  While Commissioner Chilton can’t say there has been any monumental change in how folks see their government, over the years, Commissioner Chilton continues to try and do his part by communicating in a way that lets folks “in” on what is going on.  This writing is an effort to continue that work.  Commissioner Chilton hopes it will be a satisfying read, but more importantly, maybe some folks will avoid the tremendous tragedy that so many of our fellow citizens have endured.

TABLE OF CONTENTS 

About the U.S. Commodity Futures Trading Commission (CFTC)
Foreword
Introduction

[Specific Fraud Cases:]

• No Client will Ever Lose a Penny
• A Friend To Fraud
• We Want You to Get to Know Us
• Ossie: An Extraordinary Liar
• The Un-Coolest Guy in the Room
• It Was Just a Loan!
• I’m a Believer
• The Magician
• A Car to Match Every Outfit
• An Unfortunate Loss

Epilogue
Investors’ Bill of Rights
Red Flags of Fraud
Resources
Investor Checklist
Endnotes

Law enforcement, lawyers, students studying criminal law, and members of government agencies dealing with fraud will want this publication as a reference, and members of the general public who want to read interesting accounts of high profile fraud cases will enjoy this publication.  In addition, consumers and investors will want access to the consumer investment resources at the end of the book (Investors’ Bill of Rights, Red Flags of Fraud, Resources, and Investor Checklist) which advise consumers what to watch out for to avoid being scammed themselves.

BOOK REVIEWS for "Ponzimonium"

1) Government Book Talk blog reviews "Ponzimonium" in:

• Ponzimonium: How Scam Artists Are Ripping Off America
• Ponzimonium Revisited: An Interview from the Front Lines of the Battle against Investment Fraud

2) From T. Kirby, on Amazon, April 27, 2012:

5/5 Stars! "Equal Parts Alarming & Informative"

Great read to understand the frauds that are happening next door. Nice emphasis on the importance of educating yourself before making investment decisions. Suitable for the casual investor to finance professional.

3) Excerpt of a review in Opalesque Futures Intelligence on January 13, 2012:

On balance the book is well written, typically focusing on retail investors.  However, nuggets of wisdom can be found for the professional investor.  Primary educational messages in the book include advice that investors not invest in un-regulated entities or individuals who trade unregulated markets and investors conduct background checks of managers before investing.

In a particularly interesting story that received national media attention, Chapter Five profiles the activities of Charles Hays, who doctored actual statements from legitimate Futures Commission Merchant Dorman Trading to perpetrate his fraud.  Chapter Six tells the story of Darren Potter, who cleverly categorized investments in his program as "loans" and was ironically victim of a Ponzi scheme himself.

Many of the stories carry basic messages to which astute professional investors would likely know to avoid.  This incldues stories of investors being guaranteed profits and ponzi scam artists exhibiting overly strong performance through all market environments.  If professional investors wished to skip the dramatic stories, they could travel right to page 53 where the "Investor Bill of Rights."  This section advises investors to question managed futures fund investments that include significant fund lock-up clauses, do not properly explain obligations and fund expenses, require additional investment capital at a future point in time and have not appropriately disclosed all risks.

After the Bill of Rights, investors can continue right to the "Red Flags of Fraud" on page 57.  While many of the red flags are basic, some of the more sophisticated flags include the fund's need for secrecy, fees and expenses are not clear, the investment has abnormal methods of accepting investments and conducting independent research on the fund is difficult.

Overall the book is strong, however, one might have wanted a discussion of the differences between a fund structure and direct account investment and perhaps questioning as to why managed future funds require total secrecy while the direct account offers total transparency.