Home Real Estate The “Pink Flags” of Funding Fraud from a Former $3.8M Ponzi Scheme Supervisor

The “Pink Flags” of Funding Fraud from a Former $3.8M Ponzi Scheme Supervisor

The “Pink Flags” of Funding Fraud from a Former $3.8M Ponzi Scheme Supervisor


Please be suggested: this podcast episode incorporates discussions about delicate matters, together with suicide, which can be distressing for some listeners. If you’re experiencing ideas of suicide or emotional misery, assist is out there. You’ll be able to contact the Nationwide Suicide Prevention Lifeline by dialing 988 to attach straight with educated counselors who can present assist and help 24/7.


May you be ensnared in an elaborate Ponzi scheme? In keeping with at the moment’s visitor, instances of monetary fraud are MUCH extra frequent than the typical investor suspects. Tune in to discover ways to defend your nest egg reasonably than go away your monetary future within the arms of untrustworthy folks!

Welcome again to the BiggerPockets Cash podcast! At this time, we’re sitting down with funding fraudster turned anti-fraud advocate, James Brandolino. In 2003, James got down to begin his personal hedge fund, pooling over three million {dollars} from family and friends. However one “down” month was the catalyst for eight years of fraudulent exercise—a Ponzi scheme that included mendacity to traders, mailing false statements, and pulling cash from the fund to maintain the lights on. When the guilt turned an excessive amount of to bear, James turned himself in and has since dedicated his life to warning traders about the true risk of fraud.

On this episode, James shares his entire story—from beginning his fund to serving six years in jail. He talks about frequent “crimson flags” to look out for when investing and the significance of due diligence when one thing appears off. After all, fraud is prevalent within the actual property investing area as properly. Stick round for recommendations on avoiding actual property scams and how you can vet a syndication accomplice earlier than entrusting them along with your cash!

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In This Episode We Cowl

  • How this former fraudster constructed a $3.8 million Ponzi scheme
  • The right way to forestall funding fraud from occurring to YOU
  • Probably the most frequent fraud “crimson flags” to be careful for
  • The right way to correctly vet somebody earlier than entrusting them along with your cash
  • Funding fraud in actual property syndications (and how you can keep away from scams!)
  • Utilizing your personal community to assist uncover fraudulent exercise
  • And So A lot Extra!

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Word By BiggerPockets: These are opinions written by the creator and don’t essentially characterize the opinions of BiggerPockets.


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