To anyone who knew anything about asset protection, APG’s strategies were ones that not only didn’t work but would eventually get clients and, as it turns out, advisors in trouble.
I wondered what happened to Bill Reed. Now I know. He’s been indicted in a 30 page, 32 count indictment filed by the United State District Attorney’s Office in the District Court of Nevada
Years ago I warned advisors to stay away from a sales platform put forth by Bill Reed, the author of “Bulletproof Asset Protection”: I guess I was right.
In addition to being an author, Reed was one of the founders of the Asset Protection Group. APG was a company that helped clients “hide” assets and avoid income taxes.
The indictment alleges that APG sold the training program to as many as 1,000 people at $10,000 each; created about 2,500 disguised ownership corporations in Nevada for about $800 each; opened more than 900 disguised ownership bank accounts, and prepared more than 400 fraudulent liens.
During the final three years of the scam, from 2003 to 2006, APG is alleged to have received more than $63 million in deposits and made more than $62 million in withdrawals through one of its bank accounts. The company also reportedly sent more than $11 million to offshore accounts
To anyone who knew anything about asset protection
, APG’s strategies were ones that not only didn’t work but would eventually get clients and, as it turns out, advisors in trouble.
APG spread through advisors
APG spread like wildfire because it was marketed through financial planners and insurance agents. Why would such advisors go out and pitch bogus asset protection plans
? Because Reed charged $10,000 plus for an “asset protection plan,” and advisors who sold them would be compensated from each sale.
Of course Reed charged advisors $9,800 for the opportunity to be trained to sell his bogus strategies and for the opportunity to sell them. The funny thing is that 1,809 of the 1,930 advisors who paid for this opportunity did not sell enough asset protection
plans to get back their $9,800 investment.
Why write an article on Reed’s and his partners’ indictments?
1) To remind advisors to think critically about who you work with. Working with people like Bill Reed can ruin your reputation and put your livelihood at risk.
2) To remind you that the asset protection space is still fraught with either out and out scammers or advisors who are incompetent. So be careful.
3) Asset protection is one of if not the most powerful and important topics you can deal with if your goal is to have affluent clients. This is one of the reasons I educate on this subject matter. Advisors of all kinds needed a place they can go to receive unbiased and quality education on asset protection
If you do not know proper asset protection technique so you can help your affluent clients and use this subject matter to pick up new clients, I think you are making a tremendous mistake.