A prominent finance professor told The New York Times this week she partly blames Ponzi scheme victims for their fates because they believe the irrational stories con artists feed them.Boston University Law School professor Tamar Frankel spoke to the Times about her new book “The Ponzi Scheme Puzzle: A History And Analysis of Con Artists and Victims.”
In many cases, she said, Ponzi scheme victims should have spotted red flags that would have helped them avoid getting scammed in the first place.
One of those red flags should pop up when schemers tell victims they’re making their investments available to only a “select few,” Frankel told the Times.
“Look around you, and you see hedge funds, mutual funds, private equity funds, and advisers all salivating for more clients,” Frankel said. “Yet, there are those who believe the more unique and hard to get an investment is, the more valuable it is. That’s gullibility – because it’s not rational to believe that.”
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