Q: I continually receive invitations for investment seminars; the meeting usually includes a free meal. How does one spot the red flags of an investment seminar scam?
A: Today, there are several reputable businesses in our service area that market investment programs through lunch or dinner meetings. Important to you, a potential investor, is that you do your homework and be well informed about the business presenting its product.
Falling victim to a fraudulent investment scheme can mean losing anywhere from a few hundred dollars to your life savings. While most people might not see the harm in sitting through an investment seminar, Better Business Bureau recommends researching the investment company first, rather than running the risk of falling for a financial siren song over a free meal.
Investment scams and schemes come in many forms, and a common technique to lure people in is the offer of a free financial seminar over lunch.
We have a recent example of a Ponzi scheme in this area based on investing in foreign currencies. The Forex Project invited senior citizens and others to seminars promoting unrealistic returns by investing in foreign exchange trading. Ultimately, investors lost in excess of $30 million.