Feds Charge Berg With Fraud on Investments
This is why I welcome more oversight for my industry. This type of fraud does nothing but discourage investors, destroy confidence, and ultimately destroy the lives of those people who have been defrauded. This is also why it is important for investment advisors and portfolio managers to be transparent in their business operations and as forthcoming as possible in all our activities.
It also points to the need for investors and individuals to ask the “tough” questions; to stay abreast of the activity in their accounts; and to make sure they have a clear accounting for any discrepancies they might find in statements or in communications.
It is often difficult for an investor to ask these questions, but it should not be difficult for an advisor to answer these questions. If a client feels like they are not getting a clear answer about a question regarding an investment, data on a statement or some inconsistency in e-mail or phone communication, that should be a “red flag” and they should elevate the conversation until the issue is adequately resolved for the investor.