Tag Archives: settlement

Beware of the Second trust deed Ponzi scheme

21 Dec
Ponzi circa 1920

Image via Wikipedia

Of late I have had three clients who have contracted with companies who claim they can settle the second trust deed on the clients home for pennies on the dollar. They clients must pay the agreed amount up front and to the scamming company. As an example this client paid 40,000.00 to settle a 112,000.00. Eagerly my client paid from a loan from relatives. Eight months later; still no settlement and when he asks for a refund the company says they are going through an audit,and right after the audit he will get a refund. Double talk if you ask me. The company will be using some other “clients’ money if they ever pay back. We sued them, and took their default, they promised a full refund by Dec. 15, 2011; no refund yet, I believe this is a Ponzi

scheme cooked up by some Broker. Advise: when parting with your hard earned Dollars for a pay off a second trust deed; be sure your money is going in an escrow account or attorney trust account and if it sounds to good to be true it probablyis. Take your time and slow down a discount today can be a bigger discount tomorrow!

Ponzi Schemes – Frequently Asked Questions

FBI’s video on Ponzi schemesNew
What is a Ponzi scheme?
Why do Ponzi schemes collapse?
How did Ponzi schemes get their name?
Does the SEC investigate Ponzi schemes?
Who is Bernie Madoff?
How is the SEC responding to its Office of Inspector General’s reports on the Madoff fraud?
What are some Ponzi scheme “red flags”?
What steps can I take to avoid Ponzi schemes and other investment frauds?
What are some of the similarities and differences between Ponzi and pyramid schemes?

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