Walter Kincherlow Sr., 69, never expected to retire a millionaire. But during his 29 years as a maintenance worker, he managed to sock away more than $80,000. He invested pretty well too, until an “estate planner” took a look at his portfolio while updating his living trust and clucked that Kincherlow’s investment returns were paltry.
Claiming that Kincherlow could earn 20% per year safely, he persuaded the widower to pour his life savings into real estate investments with an El Segundo investment firm called Jon W. James & Associates. Kincherlow said he was assured that his principal was safe. But signs of trouble emerged when he wanted to start spending some of his savings. Then, company managers either couldn’t be reached or talked him out of withdrawal, he said. Meanwhile, they tried to persuade him to secure a huge home equity loan to invest even more.
Securities regulators filed an emergency action last summer to shut down the firm, which they claimed was operating a $22-million fraud. James maintained in legal filings that the company’s investments simply had insufficient time to pan out. In any event, a court-appointed receiver says investors are owed about $13 million, but the company has less than $4 million in assets to repay investors.
“They’re telling me that I might end up with $6,000 or $7,000 out of all of the money I invested,” said Kincherlow, who now lives in Victorville. “I wish I never had done this.”
Read it all. Anyone know of a senior citizen’s ministry out there which tackles this head on? I would love to hear of one–KSH.
Ah. A good old fashoned Ponsi scheme.
Something else to consider: Every time my wife and I receive an offer to refinance our 4 year old home, we turn it down by tearing up the offer. No point in taking out a second or third mortgage!
And besides: I just turned 70!
#2 Cennydd, My wife and I do one better, we think. We tear off sections of paper having containing postal address and important numbers, as well as bank contracts and blank checks, and shredd them with this nice shredder machine we got years ago. Chomp, Chomp. All the non-important stuff remaining goes to Waste Manangemen here in town.
Here is another way to get back at the mailings if they contain a pre-addressed return postage guaranteed return envelope (one that does not require you to affix a stamp).
Remove all numbered items in your package by ripping them out or blotting them out with a sharpie. Shred the rest and add some shredded newspaper. Then stuff that into the return envelope and put it in the mail. The companies pay for each piece of returned mail – whether it contains good information or not. If you stuff it with more than 1 oz of stuff, they even get charged more for the right to recycle your paper for you. Direct mail (junk mail) is used because it is profitable. Make it unprofitable and it won’t be used!
YBIC,
Phil Snyder