Bad Brokers or Advisers
The Wall Street Journal published an article in May about a financial adviser in Beverly Hills, California named Ray Kay who had promoted via Radio advertising a supposedly high-yield, low-risk investment. Unfortunately, the company behind the investment is now in bankruptcy and is being investigated as a Ponzi Scheme. Mr Kay himself, it turns out, was “barred from the securities industry for allegedly running a fraud, and later fined $5,000 for breaking that ban.” The challenge for investors, however, was that when he was prosecuted for those offences he was known as Raymond. L Kotrozo. Changing names is a common tactic employed by fraudsters.