I am being solicited and harassed to invest in a multi level marketing scheme which seems like an investment scam. What do I do?

Question: My sister’s second husband, who obtained all of his wealth through the sheer genius of inheritance, is harassing me to invest in a “program” that would require me to have at least three others invest at the same time I do.  Shouldn’t I just “consider the source” and ignore him?

Response: There are many different types of investment scams (such as “Ponzi Schemes”) that will leave you wishing you had never signed up – unless you have the good fortune to leave the program before losing any funds. Even then, if the program is an illegal one, the federal government may one day come knocking on your door to reclaim any funds you might have gained.

Take a look around and notice which investment firms have come through the recession with the fewest problems. Nest, obtain the recommendations of one or two friends who also trade through these same firms and forget your brother-in-law’s get-rich scheme.

In the future, you may want to consult with a securities law expert before investing    heavily in any particular company or program.

Answered by Elizabeth Smith

Additional Resources:  Ponzi/Pyramid Schemes

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