To Good To Be True Syndrome
This morning I was reading an article on The Real Deal about a Florida real estate developer (link to article below). But here is what blew my mind when reading this, but I know very smart people who fall for this all the time: It is the "“Too good to be true” syndrome
Here is some excerpts:
Kapoor’s alleged incentives included a contractual promise to pay the investors quarterly no less than a 7 percent return on investment that would begin when deposits and purchase contracts were signed, the lawsuits allege. The payments would allegedly continue until the closing.
Yes you read that correct, 7% quarterly.
Jay Tome, a former state prosecutor representing the 33 investors, accuses Kapoor of committing fraud and civil theft against his clients. Kapoor’s alleged inducements were “super attractive when you think about it,” Tome said. “This is a classic case of ‘it’s too good to be true,’ because it wasn’t. It was fraud.”
SEC.gov | SEC Charges Florida Real Estate Developer Rishi Kapoor with Perpetuating $93 Million Fraud Scheme and Obtains Emergency Relief
Why am I sharing this? There are a lot of great sales pitches out there that will offer you a "once in a lifetime opportunity" - lets be real, if this was such a great opportunity why would they need your money...
- Chris Seveney
