Charles Marsala, Louisiana Senate Candidate, Discusses Avoiding Bouree Investments, Ponzi Schemes and Affinity Frauds

Charles Marsala May 3, 2015 0
Charles Marsala, Louisiana Senate Candidate, Discusses Avoiding Bouree Investments, Ponzi Schemes and Affinity Frauds

Most people have heard of the words Ponzi Schemes, some have heard of the words Affinity Fraud, and probably less have heard the word “Bouree.”   Any off these experiences can cost you a substantial portion of your savings.

In 2013, The National Center for Victims of Crime and the FINRA Investor Education Foundation released “Taking Action: An Advocate’s Guide to Assisting Victims of Financial Fraudreporting that more than 30 million Americans are victims of financial fraud every year.

Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.

Ponzi schemes occasionally begin as legitimate businesses, until the business fails to achieve the returns expected. The business becomes a Ponzi scheme if it then continues under fraudulent terms. Whatever the initial situation, the perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme.

Another type of Fraud is “Affinity Fraud” which refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups. The fraudsters who promote affinity scams frequently are – or pretend to be – members of the group.

Bouree is a game first played by the Pirates of Louisiana in the early 19th Century. It is played like hearts, but anyone who plays and takes no trick is said to have gone “bourré”. Having won no tricks, such a player must pay an amount equal to the whole contents of the pot. This payment forms part of the pot for the next deal.

Bouree can produce strategies where some players try to force another player to “Bouree”.  A “Friendly” Poker game among friends can become “heated.”  Some players say word the “Bouree” means “exchange of wealth.”  Bouree-related gambling disputes on the Washington Wizards and Memphis Grizzlies NBA teams have brought national attention to the game.

In the Wizards locker room a handgun was pulled and members of the Grizzlies fought on the team charter flight after players went “Bouree.”

A “Bouree Investment” is one in which you end up transferring your wealth to someone else either via a Ponzi Scheme or my making a Personal Guarantee on asset which they transfer to another company they own and leave you paying the debt after they default..

This article is for informational purposes only and is not a complete summary of information needed to recommend any investment. Consult the appropriate professional to determine how this information applies to your unique situation.

About the Author: Charles Marsala is a LPL Financial Advisor with Benchmark Investment Group with Securities offered through LPL Financial, a member FINRA/SIPC. He can be contacted at Charles.Marsala@lpl.com

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