Episode 79: What to Do If You Are A Victim of Fraud

So this week, I’m going to talk to you about syndication. Nowadays, everybody is a syndicator and what is syndication you ask? 

Basically, it’s raising money from investors in order to buy a particular investment. It could be a real estate investment or it can be a business, it doesn’t really matter.

Basically, you are getting money from multiple people or just one. What’s been really earth-shattering is that there are people who are perpetually raising money (e.g. perpetual syndicators).

That’s really scary because you know what? If you are a perpetual fundraiser/ syndicator chances are you have a likelihood of being a Ponzi scheme. 

Typically, when people raise capital from investors and they syndicate, they do that maybe once and then the property or the business is then actually generating what’s called cash flow. But if you see someone that is perpetually raising capital, or if you’re the one doing that, chances are your project or your business is not very viable. 

Stop raising capital in perpetuity and just admit your project is probably not financially viable. Because eventually, you will probably be part of what’s known as a Ponzi scheme. 

I have met people that fall victim to a Ponzi scheme willingly. Unfortunately, they have what’s called cognitive dissonance also known as DENIAL!!!

If you happen to be a victim of a Ponzi scheme, chances are you have not been able to generate cash flow from that opportunity in let’s say, five years. I highly suggest for you to report the crime to the appropriate authorities.

That could be the United States Department of Justice or the SEC, which is the Securities and Exchange Commission. 

Whatever you do, please know that you do not need to have an attorney to report the crime, you can report the crime to the appropriate authorities without an attorney. Just go online to the Department of Justice website and or to the SEC website and find out how to report the crime. We must prosecute all of the actual culprits, the thieves that are out there doing a disservice to the investment community and stealing investors money.

And that’s how you actually handle a crime that’s been committed against you, instead of remaining in a perpetual cognitive dissonance state, ie, what those of us from my “HOOD” call DENIAL, just report the crime to the authorities for heaven sake and stop kidding yourselves.


Syndication: raising money from investors in order to buy a particular investment. It could be a real estate investment or it can be a business.

Syndicator: one that organizes investment in limited partnerships by different parties. Source: https://www.merriam-webster.com/legal/syndicator

Ponzi Scheme: A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for early investors by acquiring new investors. This is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers. Source: https://www.investopedia.com/terms/p/ponzischeme.asp

Cognitive Dissonance: Cognitive dissonance, the mental conflict that occurs when beliefs or assumptions are contradicted by new information.Source:  https://www.britannica.com/science/cognitive-dissonance

Cash-Flow Quadrant: There is a book that was written by Mr. Robert Kiyosaki called the Cashflow Quadrant. And basically it’s just a quadrant it’s four squares with a letter in each square: E, S, B, and I. So the E is for an employee. The S is for a self-employed person. The B is for a business owner and the I is for an investor. Learn more: https://genalofton.com/episode-75-cash-flow-quadrant-recap/

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