WYNTER

Let's face it, everyone loves money. But not everyone knows how to handle it. Stories of people being swindled by fast-talking con men are all too common and seem to be increasing with time. The damage these con men cause is sometimes irreparable, but if you're smart, you can protect yourself.

Brian Wynter, executive director of the Financial Services Commission (FSC), has warned Jamaicans to be on the lookout for Ponzi schemes. This is a type of illegal pyramid scheme named for Charles Ponzi, who tricked thousands of United States residents into investing in a postage stamp speculation scheme back in the 1920s.

Decades later, the Ponzi scheme continues to work on the 'rob-Peter-to-pay-Paul' principle, as money from new investors is used to pay off earlier investors until the whole scheme finally collapses. Remember the ill-fated pyramid scheme in the late '90s?

Speaking at a function for long-serving staff members of the Gleaner Company recently, Mr. Wynter warned that there are several of these schemes floating around the country and urged residents to be on their guard.

"This type of thing is going on somewhere right now. The important thing people need to remember is that if it seems too good to be true, then it probably is," he said.

"There is no quick way to get rich. These are the ways that you lose your shirts. We at the FSC cannot protect investors from themselves," Mr. Wynter added.

He suggested some ways that people might use to verify the credibility of investment opportunities.

"You can ask to see income statements and balance sheets. You can also contact the FSC to find out about them," he said.

The most important point he emphasised, however, was that people should always use common sense when making financial decisions.