This is the season to celebrate many of our holidays. In the process, we will spend a lot of hard-earned money, along with losing some to the illicits of our society. Individuals and businesses are wanting your money and are going about this in many ways; some legal and others, well, not so much. We are not talking about sinister persons that are lurking in the shadows awaiting an unsuspecting victim. Instead, these offenders are operating in the wide open. Some are well-known, Corporate America companies that most of us deal with daily. Others are operating Ponzi schemes, pyramid-type organizations, financial thieves, and internet fraudsters.
When reading news articles on the internet or other media sources, it’s a rarity these days not to see a story about a person or corporation who are in trouble with law enforcement or government regulators for their unscrupulous business dealings. Just last week, a federal judge sentenced Therano’s CEO Elizabeth Holmes to 135 months in a Texas prison for her role in defrauding investors out of billions of dollars in a medical deceit case. She was not bashful about her target audiences, even homing in on Sheriff conferences throughout America. As with many white-collar criminals, it appears that Ms. Holmes is only sorry that she was caught, crying and pleading to a federal judge for leniency; “woe is me” she says. Caring for victims that she bilked billions of dollars from is apparently not a priority to this white-collar criminal.
We are currently seeing several cryptocurrency businesses fail, falling into bankruptcy or completely dissolving. Some due to Ponzi schemes tactics used by the founders and CEO’s. The main mindset of many of these entrepreneurs is, “let’s get rich quickly and screw those poor dupes who invest in our products.” Many Americans have fallen for these “unregulated” money schemes, losing billions during the process.
It’s also that time of the year when spending sprees are abundant and people are resorting to their credit cards more than any other time of the year. Inflation raising the cost of goods, along with soaring interest rates will further reduce many Americans’ abilities for financial stability. One thing we are seeing is the elevation of interest rates; banks making money on their hard-working customers. Some may ask, where is all of that money going? Here is one strong possibility, your money is being funneled to support the “it’s just the cost of doing business,” practice.
If you’re wondering what I am referring to here, just do an internet search of some of America’s largest banks and type in the keywords “government fines (bank name) or major lawsuits filed against (bank name).” These results are astonishing, where some of the nation’s largest banks are having to fork out millions, and even billions of dollars for illegal business practices. Are bank executives and CEOs being forced out the door for their illicit practices? Most are not, and they are still sitting in their exclusive offices conducting business, and some, are being caught doing the same thing they were previously fined for. And who pays – you! To them, this is just the cost of doing business, especially since there is no money escaping their own wallets. So next time you glance at the interest charges on your credit card, or fees on your checking account, just remember, “it’s just the cost of doing business!” Irritating, right?
One last item that is a gift that keeps on giving all year long is those notorious scammers who riddle our cell phones, emails, and websites with requests for money. Many of these actors and imposters are reaching out from nations such as Russia, Nigeria, China, and Jamaica (to name a few), just hoping to thin out your financial pocketbook. As with illegal drugs, “just say NO!”
In summary; stay smart, spend prudently and choose your financial institutions and investments wisely.
Happy Holidays!