The latest Ponzi scheme to collapse and come to light involves a New York lawyer named Marc Dreier who admits stealing $400 million by selling promissory notes.

As the name suggests, promissory notes are essentially IOUs. You give a person or organization your money in return for a piece of paper that says they promise to pay you back at later date with interest.

Dreier used the money from the promissory notes to buy a $10 million Manhattan apartment and an $18 million yacht, among other things.

Consumer Reports' Money Adviser recently offered some pointers to avoid being taken in a similar scheme:

• Buy only legitimate regulated investments.
• Know what you own. Don't put your money on cruise control in someone else's hands.
• Be skeptical. Question the returns. You may also want to consider hiring a fee-only financial planner as well.