Criminals use the lure of high rates of commission to enrol seminar speakers, insurance agents, financial advisors and accountants as their sales agents.
This is the ideal environment for a scam to bread. Agents relay investment opportunities to their group of members or affiliates who base their judgement to invest upon trust.
Independent advisors may be well versed to instruct you upon matters relating to their business but that doesn’t necessarily qualify them as an expert in investments. It is often the case that they also lack the resource to conduct meaningful due diligence to identify illegitimate investments.
This type of fraud, also known as “Affinity Fraud” is widespread because it bypasses our natural instinct to distrust opportunities offered to us by people we don’t know.