To invest with PWM, prospective investors had to adhere to PWM's "three rules," which required investors to (1) commit to a three year investment; (2) turn over all of their financial affairs to PWM; and (3) ask no questions of PWM management regarding the use of their funds or credit.
(2) Turn over all of their financial affairs with (3) no questions asked???
Did somebody bully you into doing this???
On page 13,
During the summer of 2006, PWM began applying for credit cards and opening new lines of credit in the names of individual investors. Investors Were then contacted by a PWM representative, who directed the investor to draw down the maximum amount on all of the credit cards and to wire the funds to TRF or one of the Duncan Companies as an additional investment. Investors who questioned the wisdom of this strategy were told by, among others, McLeod, that PWM would stop making mortgage payments if they refused to cooperate.
Did you ask questions at that point? If not, at what point did you begin to ask questions? When the media broke the story? When did you realize you were duped?
I can understand lazy portfolio investors not asking a fund manager too many questions then finding out their 401(k) was raided. There is SEC protection for that though. I can't understand letting someone handle all your financial affairs (1) NO QUESTIONS ASKED and (2) BY DRAWING DOWN FUNDS FROM A CREDIT CARD.
Seriously, I'm sorry it happened but the world is not always a friendly place and you have learned a valuable lesson. Perhaps church/military/other were not the best places to learn about the realities of mankind.
