With all the current talk about Ponzi schemes and other scams affecting the frum community, I’ve been noticing a lot of people saying that the investors were “stupid.” Were they though? Were they really brainless people who fell for a scam hook, line, and sinker without a cogent thought passing through their minds? No, I don’t think so.
A lot of people say that the affected investors were just being greedy – falling for a scam because they dreamed of quickly striking it rich. I completely disagree with this viewpoint.
Take a look at the attached photos of the big scam that recently struck in the heart of Toms River. These pictures show the contract that was signed by the investors.
Looks legit, doesn’t it? And if you aren’t a seasoned investor, how are you supposed to know the difference between a legitimate opportunity and a scam? You can’t know the difference because you don’t even know what to look out for.
So the idea that these people were “stupid” is ridiculous. They weren’t stupid, they were inexperienced. And they are learning, in a terrible, tragic way, how important experience and business-savviness is.
My point is that we can scream and shout about how terrible the scammers are (they indeed are terrible) and we can call for changes (which are warranted). But most importantly, people need investment education. They need to know how to look at a deal, they need to know how to spot a scam. If that’s not possible, they need to have people they can turn to.
I think what we could really use is a new chesed organization, one that would go through investment opportunities members of our kehilla come across, and can guide them free-of-charge to ensure that they’re not falling for a ruse. Tomchei Shabbos provides food for families that need it. How about an organization that could help keep more families from relying on Tomchei Shabbos?
DISCLAIMER: The views expressed by this reader do not necessarily reflect those of Lakewood Alerts.
First thing why if they are inexperienced didn’t they go speak with someone who is experienced instead of jumping in on high percentage returns a wealthy buissnes man once told my father about 50 years ago if they are offering to high of precent something is off
A basic high school level education in business concepts would go a long way. . .
I’m guessing your not Jewish and just being antisemitic because that makes no sense, it takes a lawyer to properly look over a contract and someone that knows real estate well to determine if a deal is good or not
In regards to the “Stupid” calling and that case in particular, how many of the investors actually did research and called the references they gave out?? How many??
One of the reference that they gave out told me he never even did business with those guys, because he knew they were not doing things the right way, and anyone who called him he was happy to advise them to stay far away. Why did he only get 4 phone calls over multiple years?!?
Social Investing because you trust them and you others who got a return is Stupid.
Madoff also gave returns at first.
There is a need for more education and mentors for investors.
There is also a need for our society to accept people who own up to their mistakes. Unfortunately many of these cases were rabbit holes. (Perhaps there should be an org for this.)
There is also a need to lower our standards of living. To avoid cultivating a society where people feel so pressured to live as if they have money they don’t really have.
PCS has a real.estate investing course. Are they not doing a good job? Why the need for a chessed organization?
Honestly, I think one of the local accounting firms Should open a department that looks into all these investor opportunities, and without their stamp of approval people will probably not want to invest. I think local organizations should also have to submit themselves to a third-party review in order to make sure they’re not wasting money. It be very easy to implement such a thing if investors/donors would insist that those receiving funds submit themselves to a third-party review.
Inexperienced? If you had a million dollars to invest, I would think you are somewhat experienced
“You can’t know the difference because you don’t even know what to look out for.” “They weren’t stupid, they were inexperienced.”
What would you call someone with no flying expertise getting into the cockpit of a Cessna, taking off down the runway, and wrecking the plane? Would you argue, “He’s not stupid, he’s just inexperienced!”? Sorry, but if you have no experience flying an airplane, it’s stupid and reckless to attempt it – risking your life and the lives of others around you.
I, too, tried to decipher the attached contract, and my eyes glazed over. I did not understand a word of it. What would then possess me – from a position of complete ignorance – to recklessly fork over huge sums of money on the basis of that contract? Only, yes, stupidity.
This letter is pretty disturbing.
Yes, investing serious money requires professional guidance, and there are many such professionals who can help with investment advice.
And they charge for it, like they should.
Why should this be given for free? Why should people who spent time and money learning the ins and outs of the finance world provide services for free? This is called growing up and actually earning money.
People need to take responsibility for themselves and not rely on the community to bail them out. Also, now that lakewood is no longer a learning only town, maybe they should start teaching something in high school.
If the chesed organization gets it wrong. They will be blamed. This is not a good idea. Education in basic math and finance would help to avoid scammers.
There are much too many people in our general population who are struggling and needed much financial help. Most are quite afraid to make their plight known. Nearby AC is a lure for many as a get rich quick remedy. I personally know a goyishe attorney in the area who has mostly FRUM clients who have gotten themselves into trouble there. He knows quite a bit about our Frum culture from his clients experiences.
He is begging me to try and get our own people to deal with this situation. He is far too busy in his law practice with OUR cases. Much of our families are living far overextended lives and our lifestyles are very expensive when compared to those of goyim.
A goyishe school charges very low tuition when compared to our similar institutions. When the school May raise tuition many parents just send their kids to local public schools. WE do not have that option available to us at all. Even a modest increase of $300 a year will send goyishe parents into a panic to public schools. And their tuition is considerably lower than our own yeshivas. The increased costs WE face have much impact on way too many in our community
Our cost for food is much more than theirs. Look at a circular from a general goyishe supermarket and compare the prices THEY pay for especially poultry and meat.
In Boro Park I pay now about $4.99 a pound for leg quarters. Such a treif product was 99 cents a pound in a recent local store circular. Not even a close comparison at all. And… their families tend to be much smaller than ours.
Here in Boro Park we have a few organizations helping out on food problems BUT too many people are still not being serviced properly. Our local organization Masbia is much too busy giving goyim food packages to really handle our OWN needs properly.
I personally know many people who will NOT go to Masbia for help…. Or even worse…. Have been rejected by them in one way or another….
But….. they still give to the goyim!!!!
Our own…… INCLUDING myself get ignored.
I am a single somewhat disabled senior citizen who cannot go to them and require home delivery. They will NOT deliver to me at all. I must stand on a line and wait with goyim. Or I need an appointment that I may not be able to fulfill. Therefore I get nothing. I am on a very limited income and can barely afford anything. The government does NOT permit me to work or I will loose my government benefits. I am the new poor. I am also very limited in my monetary assets. For example… I may not have more than $2,000 in assets or I loose my benefits. It is a nightmare! And Masbia will not accommodate ME or others in similar plights. Only large families get deliveries.
I know of a few frum seniors in such financial difficulties who look for illegal risky financial gain in order to survive. One gets only $400 a month in social security benefits and spends much of it on tobacco bHe knows exactly where…. In our own community…. To go to gamble…. In the hopes of winning a few more bucks…… of course he will loose much before he wins even a cent!!! But he is desperate. He lives in a low rent apartment and may have food stamps but still does not have enough for his lifestyle which of course is very bad to begin with..,. He is a constant chain smoker for many years!!! But look where he goes for so called HELP! I myself know where this place is and would desire it to be put out of business but I cannot do so myself. And…. It is right in the midst of our frum community!
It is not just being able to manage money better…. For many … but having more to meet needed expenses. Too many are falling into the cracks. Our local JCC and such other organizations do not help at all as they only refer individuals to governmental help. The government considers US as rich and we may not qualify for their programs. And their relief programs do not meet OUR needs.
I have been told in the past when help is needed for food costs WE should give up on expensive KOSHER foods and eat like everyone else!!! I was also…. In a different state….. not near here…. A few years ago…. When I was out of work….. why do I insist on NOT working on Saturday like all others there who work on that particular day…. Of course including the few Jews they had ever encountered!! They could not fathom that I could NEVER work on that day! I was told to get a dispensation letter from a member of the clergy which would enable me to work then!! Or… like everyone else…. Do the logical thing… and change MY sabbath day to Sunday….. which few worked and most work places were closed. When neither of these worked….. I was told to see a psychiatrist as I was committing suicide by their ideals and I could not survive there. I abruptly left their environs and returned to Jewish Civilization. But… on the other hand…. I knew … and left behind many Jews who had given in to their environment and now ignored basic principles of our existence. I could not do so… I escaped!
We have basically lost these individuals!!
That particular state has NO sabbath law for Jews…. And has few Jews anyway… so such a law would be difficult to implement for the very few who might care about it in the first place. Non frum Yidden destroy everything for us by their actions.
Our own communities must address our economic problems from within immediately before more get into more troubles. I may be in BORO ParK area… but I know well that these same problems persist in Lakewood and other areas. RENT is much too high for many today. Other necessities are also out of reach for too many.
I may need help myself….. but I look to help others as much as I am able..,,
A few years ago I was living out of town as I have mentioned…. Rent there was so much lower than HERE…. I paid …. Just a few years ago…. $425 including utilities…. For a two bedroom apartment. A far cry from what we must pay in NY area! And…. No landlord ever complained about the high cost of heating either in a very cold in the winter location. For more than three months our temperatures were below freezing ( 32) every day. At night we were usually far below zero. While I was there we got as low as 25 below zero with wind chill in excessive of 50 below. We nevertheless had plenty of heat!!
Lots of savvy business men got sucked in also EVERY BODY WANTS EZ MONEY