I thought it was such a news to learn about an insurance agent selling fake US$5m life insurance. But in the news is a report of a case of a fake $8m investment account. According to business times entitled “Client sues SocGen over his missing millions here” dated 14 October 2010, an accredited investor thought he had $8 million in his investment account but in reality it was only worth $252,652. The allegation is that the bank’s staff fed the client with bogus statements. The $8 million was meant for the investor’s children.
It is not appropriate for me to comment the specific as I could end up be sued. But I want to remind accredited investors (high networth individuals) that you do no have as much protection as compared to the man-in-the-street. High networth individuals may like to know that they stand almost literally naked when they meet financial advisers. Don’t believe me? I did a research on this and this is what I found: Why accredited investors are in for a raw deal.
Be fearful. Be very fearful.
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