There's a Sucker Born Every Minute

If you can dream up a scheme that will promise investors a high interest rate or dividends and a return of capital, chances are people will flock to your door.  Even better if your plan is "ethical", meaning that it will benefit our environmentally - stressed planet.
Omeri Bowers and Andrew Skeene came up with just such a scheme in Great Britain.  Under the name, Global Forestry Investments, these "sincere"  entrepreneurs persuaded clients to hand over 20 million pounds to grow teak in the rainforests.  They claimed teak would regenerate deforested land in Brazil and, by the way, dear client, you will receive 10% per year just for having faith in our environmental dream.  How can you resist such an offer?  You make 10%  (an outrageous guarantee in the current world of low interest rates)  and help fix Planet Earth!  Alas, the scheme slowly began to unravel.  First, a payment to investors was missed.  Global Forestry Investments said it was temporarily delayed - "the result of an unusually long rainy season in Brazil".  Sounds possible.  Time went by.  Reassurances were issued.  Then communications stopped.

What Bowers and Skeene did not tell investors was that they were secretly filing bankruptcy proceedings.  When the truth came out, it was too late.  One client naively said:  "I was assured GFI would deliver not only my initial capital back but also 10% returns per year.  They knew full well that this money was precious to us, for our retirement, but they have made no contact whatsoever".  Another client said:  "The project was promoted as profitable and beneficial to the environment.  Now, we don't think we will get our money back.  I would like to see a freezing order placed on their bank account and other assets around the world to ensure they never get to enjoy any of their gains".

Dream on, dear client.  With numbered companies and bank accounts in Britain, Dubai and Brazil, you will never pierce the corporate veil.  In my experience, the only people who will make money out of this mess will be the clients' lawyers - the clients won't see a penny.