Investor, Beware!

Do you recall a man by the name of Wade Cook?...He wrote several books such as, Wall Street Money Machine and Wealth 101, as well as conducting investment seminars in the 1990s. Well, federal prosecutors have now charged him with eight counts of tax evasion.

Cook's investment advice was seemingly simple, though incredibly risky and ultimately fundamentally flawed. Cook claimed that by following his advice, investors could earn upwards of 20% to 40% annually.

His fundamental flaw was that it is impossible to consistently reap such incredible returns!... Even Warren Buffett has managed to achieve only a 25% annual return.

Offering bogus financial and investment information wasn't what led to Cook being indicted; instead, it was his concealmemt of nearly $9 million in seminar fees and book royalties.

But amazingly, this also reveals how gullible investors willingly forked over thousands of dollars in order to attend Cook's various seminars - which were nothing more than infomercials for penny stock and options trading, and using your credit card to pay for it all.

If convicted, Wade Cook faces prison terms of three to 15 years on each of the eight counts, as well as fines ranging from $100,000 to $1 million.

This certainly proves that P. T. Barnum had it right when he stated, "There is a fool born every minute!"

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