Investment Securities

Observed that during the crisis increased the number of bubbles. Brian Roberts brings even more insight to the discussion. Why? The first reason is that many people begin to fear for their savings, often stored in the 'jars'. A demand for attractive offers 'save' money from devaluation. Financial frauds can not pass the opportunity to cheat unsuspecting citizens. The second reason is that some legitimate financial companies during the period defy the legal wage and forced to transform its operations in fraudulent schemes. Such companies are especially dangerous – they have legitimate documents and licenses. A related site: Robert Thomson mentions similar findings. Increased demand is high proposal. Typically, financial scams being used for fraud scheme with a century of history – 'Ponzi scheme'.

The basis of this method of theft is deception of investors who are attracted promise to pay a high income on the money invested. Moreover, the first investors to dividends actually paid, but not at the expense of profitable investment of capital raised, but at the expense of the money received from subsequent investors. Increasing number of financial pyramid schemes and other types of financial fraud during the crisis – a pattern not only in Russia and other emerging economies, but also the entire global financial system that the financial crisis intended to cure. A typical example – a fraud committed by the creator of works more than forty years on the basis of the financial pyramid companies 'Madoff Investment Securities' Bernard Madoff. He came under suspicion by U.S. authorities from the beginning financial crisis, when it turned out that his company can not repay investors. Madoff, was arrested in December 2008.

Fraud victims are not only individuals but also many large financial institutions around the world. It is assumed that damage from the financial bubble created by them is about $ 50 billion. How not to get into the network of financial fraud? The main and most simple rule – do not consider or participate in financial investments that promise to interest payments of more than 15% per annum. Another indispensable attribute of a Ponzi scheme – the presence of a strong advertising support. Pyramid scheme – is necessarily pretentious presentation and promotions that promise 'golden mountains', but usually does not represent any specific information. Any investment company or foundation required to provide information on their activities since the first day of his existence – an annual balance sheets, financial statements, etc. This information can be checked on the basis of the documentary. Be careful – financial fraudsters are looking for new clients! Yuri Chashin

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