There have been more and more stories of financial fraud in our world recently. Our society seems to be that much more interested, and have a heightened awareness since the Madoff scam. But, I have to ask myself, how many other scams are out there, that have not been uncovered. And, are we more aware of the scams because of the magnitude of the Madoff scam, or it is because the information is more readily available to us through the media, and more particularly the internet? Were there scams in our past that were covered up? Are there paper trails that do not exist any more (or never existed)? Ok, don’t worry, I’m not trying to become a conspiracist. But, I will say that there is a lot that can be covered up, even in this day and age.
So, how safe is your investment money, really? Do you know what to look for in an investment firm or advisor? Does the SEC know what to look for, really?
As a director of information technology in the financial industry, I know that it is not hard to pull the “wool over the eyes” of auditors, including SEC auditors. Not that I would ever do anything dishonest! So, why do I say this? Because the auditors do not ask the right questions! Oh, they may ask the questions when it comes to the trading end. I can’t speak to that side. But, when it comes to technology, they seem to be missing something. That’s where I would like to see the clients empowered to ask the right questions, themselves, protecting their assets and investments.
Ok, off the soapbox, and coming back to the topic. Is this a trend or is this more exposure. What do you think?