Crazy Money – Another Ponzi Scheme!
It’s Crazy Money Day!
Last month, 34-year-old actor Zachary Horwitz was arrested and accused of swindling his college buddies and their families in a $690 million Ponzi scheme. According to IDSNews, four Indiana University alum, all friends of Horwitz, started JJMT Capital. They invested in a limited liability company that Horwitz created in California. They thought he was buying distribution rights to movies and selling them to online platforms like Netflix and HBO for a major profit. They didn’t know he was using the funds to purchase a $6 million home and to repay previous investors.
Ponzi schemes involve financial scams promising high returns with little risk. The desire for quick profits blinds investors – especially when there’s some kind of relationship with the scammer. Eventually, the scheme collapses because they can’t keep up with the payouts. So here’s my advice: Request a company’s financial records to verify that they are legit. Do a background check on brokers or products and check out the SEC’s database for free corporate information, and don’t ignore these red flags:
• The promise of high returns with minimal risk
• Overly consistent returns
• Unregistered investments
• Unlicensed sellers
• Secretive, sophisticated strategies
Deceivers infiltrate churches, country clubs, and community organizations. So, protect yourself! Remember: “…the love of money is a root of all kinds of evil.” (1 Timothy 6:10)
And if you’re struggling with credit card debt, I recommend Christian Credit Counselors. They can create a debt management plan that will work for you. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.