how can we tell what is too good to be true? November 13, 2014Posted by Bradley in : consumers , trackback
Financial regulators try to help people make good decisions bout their money by encouraging them to focus on whether what they were being offered was too good to be true or not. I think any scheme that calls itself a “Profits Paradise” (a scheme operated from India, although designed to appear to be American) sounds too good to be true. It isn’t clear from the SEC’s announcement how many people responded to the rich promises by investing, although the SEC Order states that “By mid-January 14, 2014, the Website had more than 4,000 visits each day, including more than 200 U.S. visits.” The fact that the SEC published an investor alert alongside the press release suggests that the SEC thinks that people need to be reminded to be careful about investing. But if this scheme didn’t scream “too good to be true” what would?