It’s easy for investors to become a con artist’s mark, according to financial advisors. Many of the victims scammed in Bernie Madoff’s $65 billion Ponzi scheme were sophisticated at investing. Very sophisticated. One such person – a former trader – invested because he played basketball with Madoff’s accountant.
If successful people are prone to invest in fraudulent private companies, what is the common investor to do? Is there any hope for the average person to invest in private companies and not be ripped off? Here are some tips and red flags to look for before investing.