If Something Is Too Good To Be True

Gullible.

There are so many examples of fraud predicated on get rich quick schemes. I know of many people that get themselves involved in highly questionable business activities. And yet they remain hopelessly naive. Caught up in a dream that won’t come true. Unable to change course. Until their prized investment melts down. To nothing.

The example of Lydia Diamonds comes to mind. On their website they have the following disclaimer:

In no event shall Lydia, its directors, officers, employees, agents, advisors or website developers be liable for any loss of use, data, income or profits incidental, special, indirect or consequential or any similar losses or damages of any kind whatsoever, whether or not advised of the possibility of damages, and on any theory of liability, arising out of or in connection with the use of the information contained at this site.

The founders of the company, Emilia and Jurgen von Anhalt, have been convicted of 92 counts of contravening the Ontario Securities Act. They named their company after their daughter and they claimed royal titles from the former German principality of Saxony. They asked to be addressed as prince and princess.

The von Anhalts used a psychic to help hunt for diamonds near Madoc, Ont. About 350 shareholders handed their shares over to the psychic in trust after she allegedly “saw” diamonds on a map of the property.

The von Anhalts sold shares from personal holdings in Lydia for $1.58-million and improperly used shareholder funds for personal expenses.

There are hundreds, perhaps thousands, of shareholders left with worthless shares.

I cannot even fathom the stupidity of investing money in an enterprise where psychics are used to find diamonds.

However, there are many companies out there that operate at the same level as Lydia Diamonds. Companies that seek to take advantage of investors. Companies that promise individuals that they can get rich quickly. And then they exploit these people and take their money leaving them with nothing but a tragic lesson in life.

If something is too good to be true, it is too good to be true.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.