Identifying Risky Investment Scams
Words by Carl Agard
excerpt from Moves Magazine Summer 2008
It can happen to anybody. The lure of making a big return on the money you invested, an opportunity too good to be true, and you must get in now!! It can come from a stranger, or someone you know. It can be a real estate deal, investing in stocks, or partnering in a business venture…but you don’t want to miss out on a potential windfall.
You take your chance and jump in with both feet. You have your doubts, but you are a risk taker and no one wins big without taking risks. You can relax and wait for your money to work for you.
Time passes, and the return on your investment is not coming in. Your phone calls are not answered, and you are getting nothing but voicemails. You dig a little deeper to get more information on the opportunity that you invested in, and the people behind it. Then comes the shocker, it was nothing but a scam to fleece you out of your money.
Sad but true, millions of Americans are scammed and defrauded out of billions of dollars every year. Athletes are no different…they are targeted even more. There are many horror stories of professional athletes, former and current, who were the target of various investment scams.
Most recently, Kirk Wright CEO and founder of the hedge fund, International Management Associates, was arrested by the FBI in May of 2006 for bilking over 500 investors, made up of athletes and doctors, of over $100 million. He hired former NFL Player Steve Atwater to serve as an investment advisor. This gained him access to investors in his fund such as Terrell Davis and Rod Smith. These players are currently in a lawsuit to regain their money.
In a Security and Exchange Commission complaint filed in 2006 around the time of Wright’s arrest, Atwater invested $2.8 million of his own money, and helped to raise $15 million from his NFL friends. This money served to support the lavish lifestyle of Wright who owned several luxury cars and homes, those of which were auctioned off last year to help pay back investors. This auction only raised $2 million, while hundreds of millions of dollars are still unaccounted for.
“Athletes are paid to get superior, extraordinary results on the field or on the court. When it comes to investing their money, they want the similar, extraordinary results,” says Marc Isenberg, Author of Money Players: A Guide to Success in Sports, Business & Life for Current and Future Pro Athletes. Isenberg dedicated a chapter to the Kirk Wright saga in his book.
“When non athletes become millionaires in most cases they have the financial and business attributes that lead to their fortune. For an athlete making millions of dollars, there is not a necessary correlation to becoming a millionaire and understanding the management of financial wealth both short term and long term.”
Potential scammers can get creative in getting someone hooked into their scheme. In some cases, they can come referred by a friend or family member. “A lot of times guys come at you indirectly through somebody you know,” says former NBA star Derrick Coleman “you got to have a great support system of people you can trust from growing up and who you went to college with.” Derrick states that young ballplayers should learn to say no and do a lot of research before jumping into any kind of investment. “You cannot try to please everybody.”
Erick Strickland, former NBA veteran of nine years states that taking time to do your own research can go a long way towards saving your money and headaches. “I wish I took just a little bit more time before I invested in a land deal, but I was pressured to act now.” Erick invested in purchasing nine acres of land in an up and coming area of Atlanta five years ago to develop. After an appraisal of the land was conducted, only half of it was developable. Erick found out that the person who got him involved in the deal had forged a lot of documents and even had a lawyer in on the scheme.
Fortunately, Erick was able to sell off the developable part of the land and break even. “Athletes need to use their Players Association to conduct background checks on individuals before you write a check to invest in a business venture.”
Education is the best way to stay ahead of potential scammers. “The more educated a professional athlete is, the more likely he is to avoid bad investments,” says Dr. Lynn Lashbrook, President and Founder of Sports Management World Wide. Dr. Lashbrook has been in the sports management industry for over 35 years, and his company is one of the first online sports management company that educates future sports executives.
Dr. Lashbrook and Marc Isenberg have conducted seminars and workshops in the past educating athletes on how to recognize potential investment scams. They state that asking probing questions and putting claims in writing can help to ward off unscrupulous suitors. “This is often the signal to scammers that they are barking up the wrong tree.” They said.
Some tips to protect yourself:
· Don’t believe claims that there is no risk. There is always risks in investments, know the risk before you invest.
· Beware of promises that you will make big profits fast. No one can predict how good an investment will do, or how quick.
· Get details in writing. Legitimate companies will gladly give you all the information you need.
· Don’t agree to anything on the spot. Pressure to act immediately is a sure sign of fraud.
· Take the time to check out the investment. Do your research and background check on the company or the individual.
Real Estate Broker/Author Carl Agard has represented such notable clients such as NFL Player Kalimba Edwards, Former NBA Star Derrick Coleman, and Harlem Globetrotter Legend Jumpin’ Jackie Jackson. He published Getting the Real out of Starting a Business to teach business owners on how to build wealth through Entrepreneurship.
For more information about Getting the Real out of Starting a Business, you can go on his website http://www.carlagard.com/ .
Words by Carl Agard
excerpt from Moves Magazine Summer 2008
It can happen to anybody. The lure of making a big return on the money you invested, an opportunity too good to be true, and you must get in now!! It can come from a stranger, or someone you know. It can be a real estate deal, investing in stocks, or partnering in a business venture…but you don’t want to miss out on a potential windfall.
You take your chance and jump in with both feet. You have your doubts, but you are a risk taker and no one wins big without taking risks. You can relax and wait for your money to work for you.
Time passes, and the return on your investment is not coming in. Your phone calls are not answered, and you are getting nothing but voicemails. You dig a little deeper to get more information on the opportunity that you invested in, and the people behind it. Then comes the shocker, it was nothing but a scam to fleece you out of your money.
Sad but true, millions of Americans are scammed and defrauded out of billions of dollars every year. Athletes are no different…they are targeted even more. There are many horror stories of professional athletes, former and current, who were the target of various investment scams.
Most recently, Kirk Wright CEO and founder of the hedge fund, International Management Associates, was arrested by the FBI in May of 2006 for bilking over 500 investors, made up of athletes and doctors, of over $100 million. He hired former NFL Player Steve Atwater to serve as an investment advisor. This gained him access to investors in his fund such as Terrell Davis and Rod Smith. These players are currently in a lawsuit to regain their money.
In a Security and Exchange Commission complaint filed in 2006 around the time of Wright’s arrest, Atwater invested $2.8 million of his own money, and helped to raise $15 million from his NFL friends. This money served to support the lavish lifestyle of Wright who owned several luxury cars and homes, those of which were auctioned off last year to help pay back investors. This auction only raised $2 million, while hundreds of millions of dollars are still unaccounted for.
“Athletes are paid to get superior, extraordinary results on the field or on the court. When it comes to investing their money, they want the similar, extraordinary results,” says Marc Isenberg, Author of Money Players: A Guide to Success in Sports, Business & Life for Current and Future Pro Athletes. Isenberg dedicated a chapter to the Kirk Wright saga in his book.
“When non athletes become millionaires in most cases they have the financial and business attributes that lead to their fortune. For an athlete making millions of dollars, there is not a necessary correlation to becoming a millionaire and understanding the management of financial wealth both short term and long term.”
Potential scammers can get creative in getting someone hooked into their scheme. In some cases, they can come referred by a friend or family member. “A lot of times guys come at you indirectly through somebody you know,” says former NBA star Derrick Coleman “you got to have a great support system of people you can trust from growing up and who you went to college with.” Derrick states that young ballplayers should learn to say no and do a lot of research before jumping into any kind of investment. “You cannot try to please everybody.”
Erick Strickland, former NBA veteran of nine years states that taking time to do your own research can go a long way towards saving your money and headaches. “I wish I took just a little bit more time before I invested in a land deal, but I was pressured to act now.” Erick invested in purchasing nine acres of land in an up and coming area of Atlanta five years ago to develop. After an appraisal of the land was conducted, only half of it was developable. Erick found out that the person who got him involved in the deal had forged a lot of documents and even had a lawyer in on the scheme.
Fortunately, Erick was able to sell off the developable part of the land and break even. “Athletes need to use their Players Association to conduct background checks on individuals before you write a check to invest in a business venture.”
Education is the best way to stay ahead of potential scammers. “The more educated a professional athlete is, the more likely he is to avoid bad investments,” says Dr. Lynn Lashbrook, President and Founder of Sports Management World Wide. Dr. Lashbrook has been in the sports management industry for over 35 years, and his company is one of the first online sports management company that educates future sports executives.
Dr. Lashbrook and Marc Isenberg have conducted seminars and workshops in the past educating athletes on how to recognize potential investment scams. They state that asking probing questions and putting claims in writing can help to ward off unscrupulous suitors. “This is often the signal to scammers that they are barking up the wrong tree.” They said.
Some tips to protect yourself:
· Don’t believe claims that there is no risk. There is always risks in investments, know the risk before you invest.
· Beware of promises that you will make big profits fast. No one can predict how good an investment will do, or how quick.
· Get details in writing. Legitimate companies will gladly give you all the information you need.
· Don’t agree to anything on the spot. Pressure to act immediately is a sure sign of fraud.
· Take the time to check out the investment. Do your research and background check on the company or the individual.
Real Estate Broker/Author Carl Agard has represented such notable clients such as NFL Player Kalimba Edwards, Former NBA Star Derrick Coleman, and Harlem Globetrotter Legend Jumpin’ Jackie Jackson. He published Getting the Real out of Starting a Business to teach business owners on how to build wealth through Entrepreneurship.
For more information about Getting the Real out of Starting a Business, you can go on his website http://www.carlagard.com/ .
Contact Info: e-mail carlagardbooks@gmail.com
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