Distractions and Diversions 8

We have said often before on this blog but it bears repeating - a good (and honest) financial advisor is one that is interested in your long-term financial goals.  Unfortunately, a lot of investment fraud (which is a great deal of fraud in the first place) occurs when people place their money with the wrong advisor.

     As we have seen in this latest thread, if your advisor is wants you to be distracted from the investment, if he is not telling you the reasons for the investment or, once again, the how and why of the investment, there is an issue.  Every con artist who ever ran a three-card monte racket or a "hide the ball" game is familiar with distractions.  Con artists use distractions and diversions as part of their strategy.  Like a good magician (who is at least honest in saying that his "magic" is the art of diversion and illusion), you are looking one way when the real action is happening in another corner.  You are meant to be distracted so that you do not have the interest, or the time, to find out what is really going on.

     Next week we will be starting another thread.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diverions 7

We have, therefore, the difference between a real financial advisor and one who uses distractions,  A financial planner, a real one anyway, is one who is interested in their client's long-term goals by asking his clients to look at the how and why of investments, not just the results.  When a financial advisor does not want his clients to examine the how and why of investments, but rather would continually distract the investor, we have nothing less than a con game.

     I began this thread by talking about how a con artist, usually the stereotypical boardwalk con artist (running a three card monte or other type of scam) will employ a beautiful woman to act as his assistant.  However, the woman is there solely as a distractor.  She is present to prevent the mark from being able to focus on the task and thus not able to try and develop a strategy on how to "beat the system." 

     So, is a financial planner trying to distract you to prevent you from focusing on the investments?  Are you being discouraged from asking the how and why of your investments, or just being told to focus on the returns?

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diversions 6

So - as discussed, a real financial advisor is interested in telling his clients how and why the investments work.  He wants his clients to be fully fluent in the knowledge so that the clients know why the investment counselor is making these choices for his client.  The investment counselor does not want his clients to be distracted by trivialities.

     The con artist, however, the less-than-honest investment counselor is always looking for a distraction so that the investor does not have the time (or the initiative) to find out how and why the money is being invested in a certain way.  The "sexy girl" in this case is a metaphor for some type of device that keeps the client distracted.  The client should be focusing (according to the shady investment counselor) on the distraction, not on the real issues.  Then, like the three card monty or the shell game that is prominent on boardwalks, suddenly the investor finds that his money is gone and he has no way to account for his loss.

     So - the real question - is your investment counselor focusing on the how and why of investments, or is he simply trying to blur your focus?

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diversions 5

OK - back to reality

     So, in the last post, we asked if the attractive person was being used to distract you from the actual investment.  This is nothing more than playing the "3 card monte" game on a boardwalk and having the huckster employ a pretty woman to distract the person playing (usually the pretty woman is a confederate). 

     But, for "serious" investments, it may be obvious for a so-called "financial advisor" to employ an attractive woman.  But, attraction is carried by many different devices.

     One of the more common tactics of a scam artist/scam investment counselor is to continually try and distract the investor with the promises of returns rather than focus on the actual mechanism of the returns themselves.  In this case, the "attractor" is the promise of the high rate of returns which is used to distract the investor from the way the returns are supposed to be made.  A good, and real, investment counselor will want his clients to know how the returns are being made rather than future rate of returns. 

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diversions 4

Let's take a step back for a moment before we explore the concept of distraction in a white collar scam.

     If you have an investment portfolio (one that is still worth something anyway), look at the standard disclaimer that accompanies the portfolio.  They will always say that the investor should look carefully at any potential investment and get independent advice.  The keyword here, however, is that in a real investment scheme that is not looking to defraud investors, the investment counselor and analyst will tell the potential investor to examine the investment carefully.

     In other words, the person's attention should be taken up completely by the investment prospectus.  The person should not be distracted or have his attention in any way taken away from the prospectus and its contents.

     In other words, a real investment counselor who is selling a real investment will want to make certain that the investor's attention is where it belongs.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diverions 3

So - when will a sex distraction be used in a white collar fraud scam?

     After all, a white collar fraud investment scam (i.e. getting the mark to invest in a pyramid scheme or not do all of the checks necessary to determine if an investment is legitimate) is not like a 3-card monty or some kind of street scam where there may be a sexy lady in a miniskirt diverting the marks attention?  Right?

     Well, look at it this way.  When determining whether to make such an investment, who is more likely to get the attention of the average male?  The young, attractive woman or the balding, middle aged guy?  It's a basic question, of course.  And this does not mean that every attractive woman attempting to sell an investment is a con artist.  Far from it.

    The real key, however, is not whether the attractive person is attempting to sell the mark an investment scheme.  The real key is: is the attractive person being used to create a diversion?

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diversions 2

Using the concept of a diversion - in this case using sex a diversion in a con game - is really nothing more than a form of misdirection.  Misdirection is nothing more than looking to the left when you should be looking to the right.  Magicians use this trick all the time (in fact, it is amazing how much magic, especially "street magic," has in common with con games - but that is another story).

     A con artist will use a pretty woman (or, let's face it, a handsome man), as a way to make his "mark" look away from where the real action is happening.  Once again, this is nothing more than basic human psychology.  If the mark cannot pay attention to what is really going on, then it is much easier to convince him to invest in the con.  Con artists are counting on this.  Misdirection may not be the only element in a fraud, but it can be an important, if not the important, component of a fraud.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distraction and Diversion 1

Time to move on to a new thread.

     Have you ever been to a magic show?  Next time you go, look at the magician's assistant.  The chances are, she will be a beautiful woman dressed in a skimpy outfit.  Look at the recent commercials for the "Carl's Jr." restaurant chain - the model for the cover of the Sports Illustrated Swimsuit edition (2012) is eating a hamburger....but leaving little to the imagination about what she is really thinking.  Go to an NFL football game or an NBA basketball game and try to keep your eyes off the cheerleaders (if you can).

     I am not talking here about "sex sells," although this has been known to advertisers since the dawn of time.  I am instead talking about using beautiful women as a distraction while a con is going on, right under the eyes of the mark being conned.

     Beautiful women dresed in skimpy outfits are a great distraction, and not just for men.  Studies have shown they attract the attention of women as well (I'm talking about straight women here too, not a lesbian).  They are the perfect addition to a con game.  We will spend the next two weeks or so learning about how sex is used to distract a mark in a con game.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk