After all the news during the past few months about Bernie Madoff’s Ponzi scheme down in the US, it looks like we have our own here in Canada. Earl Jones is a financial adviser who has suddenly disappeared with $30-$50 million of his client’s money.
Authorities have frozen the accounts of both Earl Jones and his company, Earl Jones Consultant and Administration Corp. The next step they will take is to force the corporation into bankruptcy, allowing the remaining money to be distributed back to the investors.
These investors were unlikely to expect this to happen, some have invested with Earl Jones for 30 years. However, it does provide a reminder that you should have a basic understanding of what your financial adviser is investing in and what is providing the return on your investment. If you require financial advice, you would more likely be isolated from these schemes by hiring a fee-only financial planner. Another option would be to invest on your own using simple index funds.
