Facebook Hits the Maggot Mile
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(Human, 14,386
Points)
on 4/29/12 at 9:20am
Hey guys,
Just wanted to give you a heads up about a guest post I did for IHeartWallStreet about the scams coming out of Florida regarding the upcoming Facebook IPO. I wrote it geared toward financial advisers and retail clients, so it's not my usual "inside baseball" Wall Street type post. But if you're curious about how I'd go about ripping off elderly retired folks by leveraging the Facebook IPO hype, check it out:
Enjoy.





Comments
What happens after the old
What happens after the old guy coughs up the 10K?
-MBP
Sounds like you have a little
Sounds like you have a little experience with the Maggot Mile!
See my WSO blogs here.
manbearpig: What happens
What happens after the old guy coughs up the 10K?
You spend it on blow and hookers. Sorry, thought that was implied.
Edmundo
What happens after the old guy coughs up the 10K?
You spend it on blow and hookers. Sorry, thought that was implied.
I don't get it. I thought the old guy is one of the best clients of this fraudulent shop, which is the only reason the pitch works. How does a shop like this acquire any loyal customers?
-MBP
manbearpig: Edmundo
What happens after the old guy coughs up the 10K?
You spend it on blow and hookers. Sorry, thought that was implied.
I don't get it. I thought the old guy is one of the best clients of this fraudulent shop, which is the only reason the pitch works. How does a shop like this acquire any loyal customers?
They don't. It's all about fronting and loading. Fronters open the accounts with some BS story about a stock that's going to the moon. Once the account is open and funded, the loader comes in and hits the client for the big money. In the Facebook case, the fronter gets the client to send in $10,000 for Facebook shares that don't exist, and then either the fronter baits-and-switches the client into something else when he can't deliver Facebook, or the loader comes in and convinces the client to send in $250,000 for some bullshit deal "that has even greater potential than a measly 58%".
There is no client retention - it's all about soaking a guy for every penny you can and then moving on to the next guy. Telling a mark that you're only going to your "best clients" with an opportunity (thereby implying that he's one of your best clients to make him feel special) is one of the oldest tricks in the book. The guy doesn't even have to be a client, he could be a prospect you've been trying to close for awhile. Then the pitch goes something like, "I've never done this before because it's only supposed to go to our top clients, but I have a feeling that you and I are going to do some huge business over the next 10 years so I'm going to make an exception in your case."
9 out of 10 people are going to tell you to get fucked, but you can make six figures a year on the one who doesn't.
Jesus, that's disgusting
Jesus, that's disgusting shit. Thanks for the post Eddie
"WSO is like the 300 for anti spamage. None shall pass." -happypantsmcgee
"You stop being an asshole when it sucks to be you." -IlliniProgrammer
bookmarked will read it
bookmarked will read it tomorrow
|| But feeling good and enjoying life are prerequisites to success, not by products of it- Midas Mulligan Magoo ||
Edmundo
What happens after the old guy coughs up the 10K?
You spend it on blow and hookers. Sorry, thought that was implied.
I don't get it. I thought the old guy is one of the best clients of this fraudulent shop, which is the only reason the pitch works. How does a shop like this acquire any loyal customers?
They don't. It's all about fronting and loading. Fronters open the accounts with some BS story about a stock that's going to the moon. Once the account is open and funded, the loader comes in and hits the client for the big money. In the Facebook case, the fronter gets the client to send in $10,000 for Facebook shares that don't exist, and then either the fronter baits-and-switches the client into something else when he can't deliver Facebook, or the loader comes in and convinces the client to send in $250,000 for some bullshit deal "that has even greater potential than a measly 58%".
There is no client retention - it's all about soaking a guy for every penny you can and then moving on to the next guy. Telling a mark that you're only going to your "best clients" with an opportunity (thereby implying that he's one of your best clients to make him feel special) is one of the oldest tricks in the book. The guy doesn't even have to be a client, he could be a prospect you've been trying to close for awhile. Then the pitch goes something like, "I've never done this before because it's only supposed to go to our top clients, but I have a feeling that you and I are going to do some huge business over the next 10 years so I'm going to make an exception in your case."
9 out of 10 people are going to tell you to get fucked, but you can make six figures a year on the one who doesn't.
Wow that's messed up. Thanks for filling in the blanks.
-MBP
great read
great read
"History doesn't repeat itself, but it does rhyme."
Interesting post. Maybe an
Interesting post.
Maybe an obvious question.
Once the old guy finds out he's been had and reports the fraud, does the entire shop just pack up and disappear? It's surprising that guys like that can be in the business for 10+ years. I imagined there would be more stringent laws to prevent repeat offenders.
Unfortunately these shops are
Unfortunately these shops are really good at bullying clients and figuring out which ones might go to the regulators and which ones will just quietly take their lumps. Also, the SEC and other regulators (FINRA is better but has its own set of problems) are way overstretched and this is considered small time to them. When you miss a case like Bernie Madoff, there's no way you're gonna catch some scumbag in Boca Raton making $90,000 a year by scamming less than $500,000.
Edmundo
Unfortunately these shops are really good at bullying clients and figuring out which ones might go to the regulators and which ones will just quietly take their lumps. Also, the SEC and other regulators (FINRA is better but has its own set of problems) are way overstretched and this is considered small time to them. When you miss a case like Bernie Madoff, there's no way you're gonna catch some scumbag in Boca Raton making $90,000 a year by scamming less than $500,000.
Thanks for the explanation.
Eddie got around to read the
Eddie got around to read the article. I know a guy who worked at a shitty brokerage in Fort Lauderale and now works for a shitty brokerage in Manhattan. What I cant understand is how are these guys are still in business. I cold call all day selling legitimate tech services and I get shit on by CFO's. Better attend a seminar in FL to get updated on the newest BS methodology.
Btw, damn I didn't know you owned a yacht brokerage. That sounds hella balla. Did you really make all your retirement money in 2yrs? Damn it would've been sick if I was working with you in the 90s. Btw whats the progress on the book? I need a signed copy!!
|| But feeling good and enjoying life are prerequisites to success, not by products of it- Midas Mulligan Magoo ||