In the Mankato, Minnesota area and throughout the rest of our country, folks have heard stories about Tom Petter’s infamous ponzi scheme involving false electronic sales. Although the case was filed approximately seven years ago, difficulties in processing this complex case have caused a series of delays and a number of bankruptcy filings from Petter’s victims. Fortunately, this case recently had another day in court, bringing Petter’s victims closer to justice and financial stability.
To maintain your own financial health and well being, it’s important to understand the warning signs related to fraud or ponzi schemes. Here are a few signs that a deal is likely too good to be true and that it may lead you to bankruptcy:
- Advise Safely: If you are consulting with a financial advisor, make sure that they’re accredited and truly qualified to help you with your money. Allowing others access to your banking information and statements requires a great deal of trust, so in order to avoid potential bankruptcy, be sure to do your research!
- Custodian Versus Manager: Before selecting an advisor, understand the distinction between an advisor and a custodian. A custodian only possesses your accounts, whereas a manager actually makes transactions. These two positions should be separate, otherwise you’re allowing one person far too much access to your finances, and you could ultimately be heading towards bankruptcy!
- Be a Skeptic: Does something about your banker seem odd? Are you receiving a pitch for a strange product or service that seems too good to be true? It likely is too good to be true, and it may cause you personal financial woes or even bankruptcy. It’s important to be aware of all the risks and to have all the information before committing yourself financially!
Before making these important financial decisions in the Mankato, Minnesota area, be sure that you understand exactly what you’re getting into and who is getting into it alongside you. With a discerning eye, you’ll be able to avoid ponzi schemes and the resulting bankruptcy or financial woes.
For further information regarding bankruptcy, contact the professionals at Behm Law Group Ltd. today.