Like a man struck by lightning three times, billionaire oil baron Robert Belfer has the dubious distinction of falling prey to Enron’s corruption, Bernie Madoff’s Ponzi scheme and the implosion of cryptocurrency exchange FTX.
To say this 87 year old is a financial fraud survivor is putting it mildly. Madoff took him for tens of millions. Kenneth Lay’s energy company drained him of billions. Now, as first reported in the Financial Times, Belfer stands to lose a total stake of $34.5 million in Sam Bankman-Fried’s crypto company.
Cold comfort, perhaps, but in every case Belfer was far from alone in losing a fortune. With FTX, other wealthy Americans like New England’s Patriots owner Robert Kraft and Tampa Bay Buccaneers quarterback Tom Brady have been sacked, if you will.
So arises the question: If wealthy investors backed by a team of advisers can fall victim to fraud, how can everyday people ever hope to avoid the same fate? Here are three ways to make sure you never get taken.
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1. Make sure it registers to check the registration
While some frauds may be impossible to detect, others give telltale signs. First ask yourself before making any investment: Is it registered? Most investment products must be registered with a state financial institution, making it easy to research whether they’re…
