A campaign donor for Rick Perry let the presidential candidate use his private jet to fly to campaign appearances in Iowa and South Carolina. The donor is under investigation by both the Securities and Exchange Commission and the Texas State Securities Board. Is this what Sarah Palin meant when she criticized “crony capitalism”?
Have you heard of the risky investment called a life settlement? You buy someone’s life insurance policy (they receive a big cash buyout), then you continue to pay the premiums until that person dies. You get the benefits. Regulators say there’s lots of fraud in these so-called death bets. Texas refuses to regulate.
Dave Lieber’s Watchdog Nation has studied the life settlement industry in recent months, warning potential investors that these so-called “death bets” can be risky. Several company owners have been convicted. Others face legal troubles. Those in the industry who say they are honest are battling the bad apples in the barrel.
The Bernard Madoff lesson is that we have to investigate before we invest; and if it’s too good to be true, it probably isn’t for real. That’s a lesson worth repeating, especially after you hear about how almost a thousand investors lost money in a “death bet” scheme.
Imagine in this age of financial scandal if your financial adviser sends you a “Dear Client” letter informing you that the company he urged you to invest $50,000 in has been shut down. But, he writes, you should feel no obligation to cooperate with investigators. And he coaches you on what you do NOT have to say. That’s what happened to clients of a Texas financial adviser when a life settlement company was shut down by the state. Watchdog Nation founder Dave Lieber shares the details.