String of Ponzi schemes and fraud continuesArticle added by Roccy DeFrancesco on December 29, 2009
Roccy Defrancesco

Roccy DeFrancesco

MI

Joined: May 24, 2006

You may remember my recent article, "Fake TV shows: good or bad for our industry?" In that article, I told you about an advisor who used fake TV shows as part of his advertising, a trend I feel is a problem for our industry. Wouldn't you know it? Wayde McKelvy of Speed of Wealth, the same advisor I alluded to in my newsletter, was just charged by the SEC with operating a $30 million Ponzi scheme.

My predictions about things to avoid are not always right, but I had a feeling about this advisor, and it appears I was correct. I don't know Mr. McKelvy, but he's got some serious stones. You should read the correspondence he sent out after the SEC complaint came to light. I'd like to see a psychological profile on this guy.

The moral of the story? When something looks too good to be true, it probably is. If your gut tells you to stay away from someone, it's usually right. In this case, after looking at his Web site, I knew that something was wrong (although I had no idea it was this wrong.)

In a separate case, the SEC recently accused Patrick Kiley, host of "Follow the Money," of cheating investors using an FX scam.

See if this sounds like something you've been pitched recently: "The regulator said the duo claimed that the currency accounts would generate annual returns of 10% to 12%. Instead, their foreign-currency trading resulted in millions of dollars of losses."

With the stock market in turmoil, many clients are subject to scammers who want to sell them "alternative" investments. I'm sure they're all not bad, but if you want to be a scammer, now's the time to come out of the woodwork to pitch something besides stocks, mutual funds, and real estate investments.

Another scam?

How about a 7 percent guaranteed rate of return (accumulation value) with a guaranteed income you can never outlive? This, too, may sound like a scam to many. How can anyone guarantee a 7 percent rate of return and a guaranteed lifetime income you can never outlive? As many of you know, it's fairly simple. It can be done with the new Fixed Indexed Annuities (FIA) in the marketplace.

To learn more about my favorite FIA with a guaranteed income benefit (GIB) rider, please contact me using the forum below.

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