When is it bulls--t?

[Account Closed]

In my local market there recently was a big scandal about someone who was ripping a bunch of investors off. Without going into too much detail, he was a well-known guy in the local community and a lot of the investors who were taken, considered themselves seasoned and experienced. I have never had any dealings with this individual or any of the people who lost money but in today’s day and age once it hits the internet the word gets out there. What I don’t understand is how people didn’t see it coming. I remember the first time I met the guy. I was headed to a meeting and new to the city. Someone I knew well was going with me and said “I want to know what you think of this guy. He’s kind of controversial. Some people like him, some don’t.” After the meeting, the same guy asked me for my thoughts. I remember distinctly telling him that I have met a lot of ------------s in my life. I would keep my distance from him. It never ends well. I could smell the BS rolling off of this guy. I am just surprised that so many ‘seasoned’ investors were taken by him. 

What tell tale signs do you look out for to know when you need to distance yourself?

[Steve S]

Personally I just assume everyone is trying to rip me off until they prove otherwise.  Trust but verify.