Gregory Applegate Scam II
According to Court documents, Applegate:
"Promised investors their return would be 8 percent and that he would take no commission. Instead, his payment would come from any profit above 8 percent. If the investment did not reach 8 percent, he promised to refund their money. "
What is wrong with this deal?
Technorati Tags: risk free investment, treasury bond, treasury rate, money making machine, adage, applegate, court documents, borrow, legitimate, fraud, invest, investors, tests
It clearly makes no sense. There is no risk free investment returning 8%. Beginning and end of story. The risk free investment is a Treasury bond, nowhere near 8%.
If Applegate was legitimate, then he had an perpetual money making machine; borrow at the Treasury rate, and invest and get 8% risk free. Not possible unless the law of gravity has been repealed.
But notice that an 8% return is not too good to be true. What is too good to be true is that there was a guarantee.
Technorati Tags: risk free investment, treasury bond, treasury rate, money making machine, adage, applegate, court documents, borrow, legitimate, fraud, invest, investors, tests
