Comments about ‘Taken in Ponzi scheme: One person's sad story’

The penalty for these types of crimes needs to be more severe. Ponzi schemes, identity theft, etc.. are crimes that come from very evil minds and they have zero respect for you as a person. I would rank it up there with the top crimes that a person can inflict on another. 10 YEARS ! is all this person will get for this crime. Life in prison would be a better solution.

The love of money is the root of all evil, and I see it on both sides here.

There's no mention of Mr Burton's happy life, wife or children. Just how he continually parlayed money into wealth.

My grandfather was like that. He started with nothing, ended with nothing ... and counted his pennies and dollars in between.

Mr Burton is out having fun with his girlfriend, motorhome and toys in the desert.
Sounds like he's still better off than most.

I met with Travis back in the middle of the refi boom. He was living like a rock star. I couldn't figure out how he was able to find so many deals that would return such high amounts. Everyone can make some crazy returns every now and then, but to do it consistently with that much money is impossible...unless you have a government contract that is bilking the american people.

What a nice way to represent the church. Pay tithing on stolen money. How nice. He should have gotten 50 years, because that money is gone for good. What a coward.

I agree that the penalty for these types of crimes is too low. They need to put this crime up there with murder penalties, either death or life in prison and that would likely sufficiently deter others from doing these crimes. Otherwise, to receive a 10 year sentence (it is never much more than this)and steal in many cases tens of millions of dollars or more, they're really being well paid for those ten years, which years may be further reduced for good behavoir (as these are not violent criminals so of course they qualify for good behavior, and they typically go to nicer federal prisons, so they really have it too easy). As while they may also be sentenced to pay back the money we all know they never will and I for one believe that they never give up or surrender all of the money they took when they were arrested as it is just too easy for them to have put some away for the day they return from prison. As penalties are too low and rewards too high we have too much of this type of crime.

Doug,

Very good article on a topic that the public to be aware of. I have only one question, Do they really have tigers in Africa?

This is so sad but I can tell you from personal experience as an investor and retired stockbroker that if you walk into a so called "reputable" big name brokerage firm and give them your money to put into mutual funds, hedge funds, etc. that 5 years from now your results will be almost the same except that you will have a little left over and they won't take your money and spend it, they will just lose it for you in a slow methodical way. Every time you call them they will tell you to "hold on for the long term" (ie until you die) and "everything will be alright". That is why I got out of the business. These firms are just as crooked as the ponzi scheme guys except they have a license and nicer offices and its harder to sue them. Your money in the end will be almost gone just as it would have been with this guy.

...if it sounds too good to be true...

Here's a simple rule everyone should follow to avoid being suckered in: Never, ever, ever go into business with somebody you know through church.

Brave Sir Robin

Exactly. Time and circumstance has proven this to be true again, and again. Though it seems harsh, it is undeniably good advice.

24 percent every 9 months? caramba! that's more like a bank robbery! how in heavens name do these astute, hard working people fall for these schemes? (unless they 'know' ?)

considering the extent of these crimes, i too, think these bums are getting off way too easy. its NOT a crime of no violence, it IS a crime of economic violence and betrayal, deceit, and certainly one of pre-meditation. it throws people into the street when it gets found out, and that alone is cruel beyond compare!

the Ponzi end game is to deprive others (many others!) the full use of and the security provided by their own true work ethic.

There are several lessons here. The first is the best when a deal is too good to be true it is. Second, the money is gone get on with life and do not dwell on could have been. Third, where the greatest greed, the person who promises 24% every 9 months or the person who believes this kind of return is even possible. In most Ponzi schemes there are two perpetrators the duper and dupee, both are greedy.

I won't deny that with the benefit of hindsight, it is easy to say "well these investors were being just as greedy as the guy convicted of a Ponzi scheme", but the truth is that the most powerful learning in our lives comes from past experience. And if there was a pattern of this person paying out the promised money, with the promised 24% return, then the people who were being duped really had no reason on the surface to question the legitimacy of the investment - and why would you, if you were making 24% returns on your investments? You would probably just think yourself very lucky to have found such a great place to put your money. Particularly once you have given the money, you are (literally) invested by virtue of giving up the cash, but you are also psychologically invested because nobody wants to believe we could be susceptible to being scammed. So you would justify it in your mind with the overarching belief that what you did was a good decision, and that can cloud your ability to objectively look at the situation.

We all think that we could never fall for this kind of scheme, but the con artists who pull this off are usually very charming, personable, and convincing when it comes to tricking people out of their money. They are adept at finding people who will be vulnerable to their deception (whether it be through trust via church/social affiliations or something else), and even the smartest, most cautious people can be taken in.

Also, is the church going to give back the $850K paid in tithing? Maybe they could split that up amongst the duped investors...

Mmmm.... paying tithing on money you know you've stolen. Now there is a morally mixed up person. These frauds will never ever stop because there will always be people willing to perpetuate them and people who allow greed to cloud their education, experience, common sense, or all three.