Have you heard of affinity fraud? It’s the type of con where a scam artist will convince affluent people to invest in a certain fund or company. The con artists gain the trust of preachers, doctors, and other “leaders” and then get them to invest. Those people get huge returns on their money right away, so the other people around them start investing. The lead investors are usually not involved in the scam, but they spread the word because they are excited. The problem is that there is no real money, and often the scam artist is fronting the scam with his own money. Affinity fraud has been around since the 80s but it’s back “in” hot and heavy right now because people are concerned about investing in stocks. One “social club” lost $27 million in a recent scam. So remember to be cautious when someone in a group around you starts talking up these investments. People let their guards down when someone they know recommends something. But you need to independently verify the true story. Phenomenal returns on investments don’t exist.