Financial Planning Frauds

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Financial Planning

Not only are you interested in investing your Quatloos, but others are interested in investing your Quatloos for you! Why, because they make their Quatloos off of your Quatloos, of course. And herein lies an inherent conflict-of-interest, which begins innocently enough but can quickly develop into outright fraud.

"After years of trying to get rich with get-rich-quick schemes, I know I'm going to get rich with this scheme . . . and quick!" -- Homer Simpson.

Equity Indexed Annuities
An Equity Indexed Annuity (EIA) is a great financial tool. You get at least a minimum return, but a chance of greater returns according to participation in an index. For people who are afraid of losing money in the stock market, an EIA offers CD-ish safety but with the hopes of greater returns.

Investor Alerts Regarding Annuities and Insurance

Regulators to Warn of Annuity Abuses

Quatloos! Guide to Insurance
General educational overview of what insurance is and isn’t, and a description of the primary types of life insurance policies that are commercially available.

412i Defined Benefit Plans
The IRS has issued new Regs to combat perceived abuses to defined benefit plans qualifying under IRC 412i (hint: No more springing cash value!).

Imperial Consolidated Scam

Asset Protection Scams
Bogus asset protection plannings, bearer shares, and other worthless arrangements.

Asset Protection Group Scam
Federal Trade Commission shuts down Asset Protection Group, Inc., and has it placed into receivership for a franchise scam involving convicted felon Rick Neiswonger

Texas Joint Stock Company Scam
The Texas Joint Stock Company scam is an form of asset protection scam that these days seems to be run mostly from the Dallas area by a bunch of con artists who got into trouble a few years ago selling bogus Pure Trusts...

Corporation Sole Scam
Beware the "Corporation Sole" being marketing by scam artists as a tax planning and asset protection tool.

Insurance Company Bad Faith
Description of the "Top 40" types of acts of bad faith by insurance companies against their customers.

Life Insurance To Pay Estate Taxes
Buy enough insurance to pay off your estate taxes and your net ahead! Maybe. But the only ones who you know will be net ahead will be Uncle Sam, your insurance company, and your insurance salesman. Your kids? Who knows. And just why is it that your insurance salesman takes all those trips to Europe anyway?

Sales Commissions and Loaded Investments
Why sales commissions means conflict-of-interest, and why you should avoid paying a sales load for anything. And, the worst of the worst, fee based financial planners who charge you a flat fee of assets under management and receive sales commissions for putting you into loaded products.

Self-Liquidating Loans
Borrow $500 million on Monday, and live on E-Z Street on Tuesday. How attempting to get 9-figure loans means $99 profit to hucksters.

Black Holes & UFOs
Criminal tax evasive strategies pitched by tax lawyers, whereby your money eventually "disappears" off of IRS radar screens and ends up with your kids -- but both you and your kids may have trouble finding the money yourself, especially while making an extended stay at Club Fed.

Alaskan Trusts and Delaware Trusts
A real asset protection tool, or a scam to give the trust companies and banks in these states additional revenue?

Living Trusts
Considers the Misuse and Abuse of one of the most heavily marketed legal planning tools.

Avoiding Investment Scams
10 simple questions you can ask to help keep you from being defrauded.

Financial Planning or Fleecing of Seniors? - Insurance Products & Investments

Financial Planning, Estate Planning and Asset Protection Scams
Discusses abuses and issues in financial planning, including questionable compensation practices, bogus institutes and accreditations, bad products, annuity abuse, inappropriate life insurance sales, living trust mills, and related misconduct. Also answers questions about usually legitimate but developing areas such as life insurance premium financing, life settlements, charitable gifting strategies, etc. Includes discussion of asset protection scams.

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