Usain Bolt loses $12 Million to hackers
- Laraun and Sherunda
- Feb 3, 2023
- 4 min read
Making money while you sleep is trending on social media. Most Facebook reels and YouTube shorts are clips of people living extravagant lives. You will see business guru’s telling you where to invest your money. The truth is, most people only know about linear income, trading your time for money. There are 22 million millionaires in the United states. That's about 8.8 percent of the United states are millionaires. While there are quite a few millionaires in The United States, most people don’t know where to put their money to collect residual income.
Retired Jamaican superstar sprinter Usain Bolt told reporters Friday he is searching for answers after $12.7 million vanished. Authorities are investigating a private investment firm as part of an alleged large-scale fraud operation. Bolt was recently told there was only about $12,000 remaining in the account, his lawyer Linton P. Gordon said in a phone interview. The account was part of Bolt’s retirement and lifetime savings.
“It’s distressful news for anyone,” Gordon said on Wednesday. “And certainly in the case of Mr. Bolt, who established this account as part of his private pension.”
Jamaica’s Financial Services Commission on Tuesday said it had installed its own temporary manager at SSL, following reports of allegations of fraud that had earlier prompted the commission to put the bank under enhanced oversight.
SSL did not immediately respond to calls and emails requesting comment.
Gordon said regulators have not communicated with him or his client. If Bolt does not see the money returned within eight days, Gordon said he plans to take the case to the Supreme Court in Kingston.
Bolt, an eight-time Olympic gold medal winner, is considered the world’s fastest man, holding world records in the 100-meter and 200-meter races. On Monday, Bolt quoted lyrics on his Twitter account that, in part, read: “The History of Evil…What is the Root?…MONEY.”
Bolt had millions of dollars invested with the firm and has fired his business manager in response to the ongoing investigation. Bolt’s attorneys said the athlete’s account with Kingston-based Stocks and Securities Limited dwindled from nearly $12.8 million to around $12,000. They had threatened to take legal action if the funds were not returned by Friday. It was not clear as of Saturday if any legal action had been initiated.
Jamaican authorities have requested help from the FBI and other unidentified international experts, adding that clients were given false statements regarding their balances as part of the alleged fraud.
Here are 5 investment scams to look out for
1. Internet Fraud
The Internet's wide reach and supposed anonymity are two attractive features for scam artists. They use the Internet for a wide variety of scams including pyramid schemes; promotion of bogus "prime bank" investments; and enhancing the sale of thinly traded stocks. The Attorney General urges investors to ignore anonymous financial advice on the Internet, via e-mail or advertisements.
2. Boiler Rooms
Named after the rented office spaces they use to "turn the heat up" on potential investors, these fly-by-night operations rely on "cold calls" and fast talking to make their sales. Boiler rooms are great vehicles for scammers because it is often difficult to distinguish scams from a legitimate developmental business.
3. Phony International Investments
With the strong performance of many foreign stock markets, many American consumers are investing some of their funds abroad. Con artists have responded by offering scams with an international flair. In one case, a con artist fleeced 400 investors out of $7 million by promising 30 to 40 percent returns on certificates of deposit and other investments through a bank in the Marshall Islands. In fact, the bank existed only on paper and its sole officer was a Marshall Islands gas station attendant who picked investors' checks and mailed them back to the con artist. Even when U.S. investors deal with legitimate investment opportunities overseas, they remain vulnerable to such factors as loose or nonexistent investor protection regulation, currency fluctuations, limited opportunities to pursue grievances and political instability in some nations. Smart investors will exercise extreme caution before putting money into any foreign investment.
4. Investment Seminars and Financial Planning Activity
Scam Artists use investment seminars and pose as financial planners offering appealing and farfetched investment advice to the unsuspecting investor. Much of the advice they give during these seminars may require them to be licensed or registered, and they may fail to disclose conflicts of interest, as well as hidden fees and commissions. The extra fees or phony investment opportunities are usually not discovered by the investor until it is too late.
5. Illegal securities Offered as Individual Retirement Account (IRA) Investments
Increasingly, unscrupulous self-directed IRA custodians are offering to hold unlawful and fraudulent securities in IRA accounts. When the fraudulent or illegal nature of the securities becomes clear, investors may not only lose their entire investments, but may be faced with additional IRS and administrative penalties as well. Many investors believe that just because an investment is being held in an IRA account, it is safe and legal. Investors must ensure that the investment is properly registered and is being offered by a properly licensed salesperson.
Have you ever been financially scammed?
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