You're watching...
White collar crime expert James Ashe on how to protect yourself from falling victim to investment scams.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Nearly 5000 people lost almost twenty billion dollars in the Bernie Madoff Ponzi scheme.
The largest fraud case in Wall Street history.
Today after nearly three years of waiting their first checks are finally arriving in the mail that's a long time to -- With white collar crimes on the rise since 2008.
It's important know what red flags you might -- -- look out force to you don't get taken.
There was some tips James ash a white collar crime expert and forensic accountant and have many of those on the show with mark and LLP who worked.
With many of Madoff victims now one of the things that I think it's so interesting about this case is if you look solicitor -- you would think it.
These are smart people these -- well known people and you might have signed on just because you knew people personally maybe.
Who were clients of -- Dotson might have trusted their judgment.
In you're a 100% right most of the Madoff investors are of our experience business.
People investors.
Sadly.
And and they were taken.
They were definitely take it -- that's no way really to make any kind of investment decision on your around.
There's also a tiny red flag out there that I think a lot of people probably aren't aware of the custodial services on these investments handled by Madoff himself.
It's not typically something you want to see.
-- that's that is correct that that is one of the big red flags that that people were complaining early on.
To the SEC.
That they found -- usual and and in in that case.
It's giving that person the money and there's no control about that person or anybody who work at may lost organization.
Of getting -- ability most most times when you give money to brokerage house and an outside organization another institution financial institution.
That I holds the money separate from the investor advisor who's making the decisions.
And it's exactly the way it should work you know.
We talked about people who you know friends and family who were involved.
One of the things that I -- it was interesting about the Madoff case the return -- through the roof.
But they were weirdly consistent each and every year yes and if you know anything about investing what you do know is that that's not the way the world works.
Right right and and and I.
In my investigation that -- -- -- very unusual because they I saw a lot of people.
Who had other investments and they saw their investments fluctuate with the marketplace but here was this great Bernie Madoff in a lot of people who like.
Late -- with really.
Idolize him and you have an and they -- allies -- because the rest their investment through Macon three or 45%.
And here's -- still doing 12% and in a down market or -- slow economy and and they idolize instead of being critical of what -- Well it's it is hardly -- critical when you're getting great returns over the course.
You know we wish you know everybody is getting that -- back today and all the Madoff victims of the best of wishes the best of luck as it was such a horrendous thing.
But frankly that's not the only way you can get taken.
If your employer.
You can also get taken help us understand what employers notes -- we have a lot of small business watchers with they should be looking out for.
While you -- to I mean if it's similar it's it's a matter of doing your diligence to make sure that there is.
Internal controls that there's monitors in your business to make sure that the person was handling the money in the business whether that be.
Checks opening -- wolves receiving checks were depositing the money in the bank.
Or recording the books are different people.
Because once a person has the access the money whatever form and may be.
They can start manipulating this that situation and stealing things well.
The does that mean that I have to be super careful about who -- higher there are other ways to protect myself well you have to be you have to be very careful value who we hire you should always get these what's called Fidelity insurance policies.
Which insures you so that if you employee does heal from -- That you have proper insurance recovery you and and you have to do your performance reviews and make sure that there.
They're not controlling the whole process of the of the receipt of money and deposited money.
Too much responsibility get some too much -- -- power and that ago arrived yes right James thanks for coming in tonight we really appreciate your expertise and where you the right person that talked to about Ponzi schemes thank you thank you what we're.
