Paddyfield makes a very valid point in that many of these Reverse Pension Plans have been around for some time with no adverse reaction from the authorities. This has undoubtedly encouraged many to invest.
However, I think there is a fairly simple explanation for their longevity, which is that most individuals, even those who have purchased multiple policies, will lose little even if the scheme fails and thus will have little incentive to take action.
Law enforcement and regulatory authorities are reactive, not proactive, and seldom bother with scams that are not brought to their attention.
Scamming people in increments of $50 or so a time is relatively trouble free. Try it for $50,000 and you may be in some difficulty.
There is one point that strike me concerning a great many of these internet 'opportunities.'
Why would any legitimate company or business wish to use one of these hokey (and expensive) payment processors in preference to a regular bank?
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