In today’s volatile economy, it seems that hardly anything makes bigger headlines than frauds, scams, and shams affecting the financial market. The Porter Stansberry investment scam is a fairly recent addition to this hall of shame. However, many people still don’t understand how or why it happened. So what was the Porter Stansberry investment scam all about? Here is a guide to understanding what happened:
Who is Porter Stansberry and what is he all about? Frank Porter Stansberry is an American businessman who publishes financial literature and other media – most of it about the state of the American economy. He formed his parent company, Stansberry & Associates Investment Researchers, in 1999. Under this guise, he began producing newsletters full of “advice” for investors eager to get the inside scoop. However, the Securities Exchange Commission (SEC) found his reports to be full of blatant lies, and Porter Stansberry was ultimately fined 1.5 million dollars for his fraud, intended to strip the pockets of uninformed followers of his advice (and to line his own wallet).
What was the scam all about? As previously mentioned, Porter Stansberry published a series of informative newsletters, in which he claimed to reveal insider tips for investors looking to make some serious cash. In this report, Porter Stansberry claimed that the government would soon negotiate a new pricing scale with the USEC (as he was secretly informed by a high-ranking government official), and that purchasers of his newsletter could cash in big if they followed his advice. About 1,700 bought into the scam, purchasing the newsletter for $1000 each! The problem was that Porter Stansberry had completely invented the “insider information” he claimed to be sharing with those unfortunate enough to purchase his newsletter.
The End of America. In 2011, Porter Stansberry released a very grim, 77 minute long video called “The End of America.” In infomercial format, this video illustrates the certain collapse of the American economy (as Porter Stansberry would have you believe), and also outlines specific steps that you need to take – NOW – if you are to protect your financial well being. And what, according to Porter Stansberry, must you do? It’s quite simple: get his booklet of off-shore investment advice, and his book entitled “The Gold Investor’s Bible,” and his report “The Secrets of Silver Investing.” All of these you get for FREE . . . when you pay fifty dollars to sign up for his newsletter. See where this is going?
In spite of the bad publicity surrounding his name, Porter Stansberry continues to bilk the American public. Are you falling for it?
About the Author: Hal Sattazahn loves studying the world of investments. He’s equally fascinated by things like the Stansberry scam as well as by the positive influence professionals like Timothy Sykes have on the future of investing.