Investors are always looking for inside advice, and many spend hundreds to thousands of dollars trying to secure it. Unfortunately, there are numerous unscrupulous entities that look to take advantage of this, while also trying to tempt ordinary folks into making unsound investments using what little money they have in their savings accounts. If you've watched television lately, you may have seen a commercial promoting a video called End of America, which many are calling another Porter Stansberry scam.
Who is he?
Before he began investing in television advertisements, Stansberry founded a private publishing company called Stansberry & Associates Investment Research and became the editor of investment newsletters, which purport to offer predictions and advice in return for substantial subscription fees.
Although you may not know a lot about Stansberry, you've probably seen his commercials. An American conservative, this investment advisor has gained fame for his infomercial, End of America, in which he outlines how liberal governmental failures will lead to terrifying economic problems that he predicts will leave most Americans impoverished; that is, unless they follow his investment tips, which are centered on buying silver and gold. Many have suggested that the Porter Stansberry scam is two-fold: to promote his newsletter and encourage people to invest in specific gold and silver businesses which are somehow related to him.
A bad reputation
It should be noted that this so-called investment advisor has been successfully sued by the SEC for scheming to defraud the public by "disseminating false information in several Internet newsletters." In 2007, a U.S. District Court ordered him and his firm to pay $1.5 million in civil penalties and restitution after it determined that his conduct involved deliberate fraud where he misled investors by making statements he knew to be false.
Not a quitter
Despite his past legal problems, many say the man hasn't given up trying to deceive unwitting investors. According to various complaints, the latest Porter Stansberry scam involves the use of his infomercial, End of America as a way to lure people into buying his newsletter by scaring them with bold predictions that don't have any real merits.
Good investment advice
If you've got a buck to spend, I encourage you to avoid this potential con. Conservatives and liberals are always banging heads over financial and social issues, and there are all sorts of unscrupulous entities looking to take advantage. Any investment professional will agree that smart investors should always divorce their personal feelings from their financial decisions. If you let this man take advantage of your political and social outlook; you have only yourself to blame.