You Can't Cheat an Honest Man

You Can't Cheat an Honest Man, James Walsh, Silver Lake Publishing, 1998

This book looks at pyramid scams, Ponzi schemes, multi-level marketing, and other such "surefire" money makers, which actually are surefire money losers.

Keep it simple; if an operation is too complicated, no one will invest in it. Practically any industry is ripe for scam artists, from real estate to travel to technology. Tax havens and tax dodges are a very popular field for thieves. Schemes run by so-called "investment advisors" or "financial planners" are the most favored area for scammers, but commodities and precious metals are a close second. Scams can come in a seemingly infinite array of shapes and sizes.

Their continued success is based on several human emotions. Family ties are very strong; people are reluctant to attack, or sue, the uncle or cousin who got them into this scheme. People are also reluctant to let others know that they have been scammed; it's easier to keep quiet. The most important emotions are pure greed and gullibility. Who can resist a "no-risk" investment with a double digit return?

What can a victim do? Some agency like the state Attorney General's office or  Federal Trade Commission will have jurisdiction over your case; make friends with them. Go after the people who got money out of the scheme before it collapsed. While the scammer was in business, they were advised by banks, lawyers and/or accountants; don't be afraid to go after them. Last but not least, when the scheme reaches bankruptcy court, as it will (Ponzi schemes have a 100% failure rate), don't be afraid to fight like a caged animal for your money. No one else will do it for you.

This book is excellent and very easy to read. Anyone can say that they would never be caught anywhere near such a scheme. Remember that the next time a friend of a friend goes on about this incredible, "no-risk" money making plan, and read this book first.