Fiance's Parents and Financial Disaster

[thekid]

Originally Posted by MClinton

"The T-bills themselves are bought at a huge wholesale discount (as an example $10). There are already buyers lined up...such as brokerage firms that pay a price of 9 times ($90), a very short sale, then they retail to individual customers for more. So, we aren't talking just the rate of return on T-bills until their maturity typical investment."

As you say, this is wrong. T-Bills are sold in a competitive bidding process with a discount off face value. This discount is the rate of return. (ie. T-Bill sold for 9 970$ which will be reddemed at 10 000$ face value 28 days later -for a rate of return of about 3.5% per year or so-). They don't bear interest. What is he talking about when he states that "we aren't just talking the rate of return until their maturity". They are usually bought by banks and resold in the secondary market.

And, more importantly and quite obviously, they are not sold 50%, 60%, 90% or whatever off face value.

Really, they should be much more imaginative than "oh, we like buy them like super cheap and then sell them right away for like super profits. We're the only ones that have though of this. Give me 500 000$".

I'm sorry. I feel really bad for you to be caught in this situations with your inlaws not listening. Letting them get away with this is just plain wrong. I strongly recommend that you take action directly against them should your inlaws not listen and contact police. Again, I'm sorry for you to be in this position.

Good luck!

[scfr]

Here's another link you can check:
NASAA Fraud Center

As others have suggested, I would call every law enforcement agency I could think of. I would also call clergy, politicians, elder care authorities in the state, anyone in authority that I thought my in-laws might listen to.

Unfortunately, if no laws have been broken yet and you cannot persuade them to back out, they may end up getting scammed.

I would take the $5,000 and stick it in a high-interest bearing MMA and then not touch it. When the in-laws lose their shirts in the scam, I'd give them the $5K back (with interest) and pray that it's enough to prevent them from becoming homeless.

Good luck!

[disneysteve]

Originally Posted by scfr

I would take the $5,000 and stick it in a high-interest bearing MMA and then not touch it. When the in-laws lose their shirts in the scam, I'd give them the $5K back (with interest) and pray that it's enough to prevent them from becoming homeless.

What a great suggestion!! I hadn't even thought about the fact that they intend to give you money. Absolutely take any money they give you and set it aside so you can return it to them. They're going to need every penny they can get after this ordeal. Unfortunately, 5K isn't going to be a huge help when they are 500K in debt, but at least it will be something.

[MClinton]

Thanks, everyone, for the further suggestions.

The NASAA website is absolutely perfect!

We seriously considered taking their $5,000, putting it in our Money Market Account (our emergency fund), and giving it back. The problem that arose, though, is that we believe that we have less leverage in convincing them to stay away from the investment if we take their money. Us taking their money, even with the intention of giving it back, presses them further into a feeling of financial desparation.

I absolutely understand the argument about taking the money, though. We'll consider this again.

I'll send another e-mail over with the NASAA website as a link and highlight some of the info there. Here's one spot that I thought was particularly relevant to this situation:

"Skilled con artists can bring out your worst traits, particularly greed, fear, and insecurity. Con artists know that promises of huge returns with no risk will get your attention."

and here,

"Often promising high-yield, tax-free returns, promoters of these schemes offer to let the “little guy” in on what they claim are financial instruments from elite overseas banks usually offered only to the world’s wealthiest investors."

I'll get in phone and e-mail contact with some authorities and get an update on the situation.

Thanks again for the help.

Best,

-M

[disneysteve]

Originally Posted by MClinton

We seriously considered taking their $5,000, putting it in our Money Market Account (our emergency fund), and giving it back. The problem that arose, though, is that we believe that we have less leverage in convincing them to stay away from the investment if we take their money.

I don't think any of us were suggesting you take the money if you can avoid doing so. By all means, refuse it. Tell them that you don't want to accept proceeds from criminal activity because you don't want to get involved in that. Tell them again how concerned you are that they are getting ripped off and that you don't want to make things worse by taking money from them.

But if they insist and you end up accepting money, then hold on to it so you can return it when they need it.

[kilcher]

You've stated your opinion and they seem determined to go ahead with it. I'm not sure what more you can do. Under no circumstances would I accept any of their money though.