Exceptional Investment Opportunity or Scam? Fraudulent Investment in Michigan.

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Exceptional Investment Opportunity or Scam? Fraudulent Investment in Michigan.

In general, many people believe that fraudulent investment schemes are few and far between and simply “don’t happen around here”. Thoughts of Bernard Madoff and his billion dollar con come to mind. The reality is that these rip-offs disguised as business deals occur regularly and on all levels and chances are, you have more than one client that has been approached about investing in one. They usually don’t result in headlines and many victim investors simply take their loss and try to conceal the embarrassment they feel.


The why is easy to understand. Today’s business news trumpets how “break through” technologies emerge overnight and start-ups transform into Facebook in months making instant millionaires.  Investors, young and old, from all walks of life are presented with “opportunities” to take advantage of a “special” situation and invest in a business deal that will result in them losing most or all of their money without every actually having a chance at making any profit. These schemes targeted at all types of investors, not just the gullible or naive. Here in Detroit, they can involve a special future way to secure a lucrative contract, a new automotive or electronics break through the Big 3 will need, a soon to be announced real estate zoning change, etc., etc. With interest rates low and most legitimate, regulated investments offering little yield, the temptation to make easy money is all the more attractive. Wealthy, sophisticated investors fall into these traps and the result is usually no action by law enforcement or a difficult, sometimes fruitless civil battle to try to get money back.


Like any Ponzi scheme, these investment schemes almost always involve three factors:

  • They offer exceptionally high or guaranteed returns.
  • They appear legitimate and often rely on reputation.
  • Exclusivity and secret.

These deals pray on investor greed and play to the ego and desire not to miss out on something that is a “once in a lifetime” deal. What none of these investments can stand up to is actual due diligence.

At RCT, we know business and we can help identify a fraudulent investment in Michigan. If you have a client who is considering an investment that sounds too good to be true, give us a call. As forensic accountants and licensed investigators, we provide that vital due diligence that can help mitigate your clients risk and avoid the pain and embarrassment. The cost is minimal in comparison to the benefits.