The Ego, The Market, and The Mania

FRAUD ALERT!
From the Office of Denver District Attorney Mitch Morrissey
Top 10 Scams and Rip-Offs of 2009 from the BBB
…to be continued in 2010

1. H1N1 Scams: Scams attempted to scare consumers into purchasing cures or providing essential information to prevent the H1N1 virus.
2. Memorabilia: 2009 provided many opportunities for scammers to sell memorabilia and collectibles at inflated prices.
3. Weight Loss Pills Free Trial Offers: Free trial offers for weight loss pills actually ended up costing unsuspecting consumers thousands of dollars.
4. Phishing E-mails: Phishing e-mails appearing to be from government agencies popped up in in-boxes. These phishing emails attempted to trick victims into divulging sensitive financial information.
5. Mystery Shopping: Consumers were told they would be paid to secretly shop in order to evaluate merchants’ customer service. In some instances, victims were asked to wire money back to scammers as a way to evaluate money wiring services such as MoneyGram and Western Union. Victims who participated were sent authentic looking checks which, when cashed left the victims “holding the bag”.
6. Lottery Scams: Victims received bogus letters or phone calls informing them that they had won millions of dollars. Unfortunately, victims were also told they had to wire hundreds or thousands of dollars back to the scammers to cover taxes or other bogus fees.
7. Friend/Family in Distress: Also known as the Grandma Scam, victims received messages from scammers claiming to be “friends” or “family members” needing immediate help. Victims were asked to wire money to pay for lawyer’s fees or to post bail.
8. Mortgage Foreclosure Rescue/Debt Assistance: Victims paid upfront fees to avoid home foreclosures or to get help with credit card debt – with no results.
9. Job Hunter Scams: Job seekers paid bogus upfront fees as part of an application process. Job applicants were also asked to provide personal financial information or social security numbers under the guise of evaluating their applications.
10. Robocalls: Thousands of people received automated telephone calls related to auto warranties and lower credit card interest rates.

Questions or assistance related to fraud: Denver DA’s Fraud Line: 720-913-9179
Follow us on Twitter @DenverScamAlert
December 2009

This is from Dimensional Fund Advisors – on the Fama French Forum.  A video with Professor Fama outlining the benefits and limitations of efficient markets.  I recommend watching this video.  

DFA’s Weston Wellington at his best – sizing up the markets and making comparisons.
If you have some time, I highly recommend viewing his video series.

http://www.dfaus.com/share/whatshou/

Traveling con artists are in metro Denver. These con artists arrive every spring with door-to-door roofing, paving and other scams, intimidating the consumers into paying thousands of dollars for poor quality work. “There is absolutely no reason to do business with people who come to your door and never let strangers in your home,” says Denver District Attorney Mitch Morrissey.

How to Recognize Door-to-Door Con Artists

• They peddle roofing, paving, and other repair work door-to-door.
• They often prey on the elderly using friendly, high-pressure tactics.
• They may say they have material left over from a previous job, or insist they did work for you or a neighbor before.
• They quote bargain prices, but demand much more after the job is complete.

To Protect Yourself from Door-to-Door Scams

• Don’t do business with door-to-door contractors – even if they promise to do the work for bargain prices.
• Get at least three bids on work, and don’t always choose the lowest.
• Insist on a written contract and don’t be pressured into paying more or doing additional projects.

Need help or have a question? Call the Denver District Attorney’s Fraud Line: 720-913-9179

I don’t know about you, but I am tired of the financial media making “good copy” from “bad news.”  They’ve been suggesting for the past 12 months that the recession we are experiencing is like the Great Depression.  I think this article puts it in a new perspective.

CNN – Recession or Depression

The recent scandals ripping through Wall Street and Main Street have awakened a few.  As new regulations and regulators aim to takeover our financial systems, one cannot help but wonder “Who Will Guard Your Nest Egg?” Jason Zweig discusses this concept in his article of the same name.  

Dimensional Fund Advisor’s David Plecha gives us an overview of the Credit Markets and a history of how we got to this point - http://www.dfaus.com/library/videos/current/