Let's play a game: Ponzi Scheme... or not?

[DHK]

If a non-name brand firm says they offer wealth management, investments, and variable annuities... look them up on brokercheck to see if they are legitimate. Especially if they don't disclose any broker/dealer and/or registered investment advisor affiliations.

Just talking with a not-yet-licensed agent who was talking with an outfit like that and that's what was on their website. I screened EVERY one of their listed team members against brokercheck - NOT ONE was listed there! (Btw, brokercheck also brings up IARs too.)

Oh, and their PAID Forbes advertisement which was NOT a Forbes article... that was a dead giveaway on that link the soon-to-be licensed agent sent me.

So... I had a little fun to send THIS message to them:

"I want to know who your broker/dealer or registered investment advisor affiliation is for offering "wealth management", mutual funds, and "variable annuities"?

You have been working to recruit a new friend of mine, and I can't see how your firm is in compliance with securities laws. Also, I recognize paid Forbes advertising right away.

I've advised him NOT to affiliate with your firm since you don't understand basic compliance requirements and I may choose to contact your local state securities regulator to advise them about your website since NONE of your listed staff members are FINRA registered OR registered with the SEC for investment advice.

Consider this a courtesy notice."

Yeah... I'm THAT guy.

Here are the links:

This is the firm: https://www.basanifinancial.com/
- notice the "careers" link has a link for a 2020 Benz: https://www.basanifinancial.com/benz

Here's the paid Forbes ad: Sumedh Basani: The Force Shaping The Insurance Industry | Forbes India

Here's this ***'s "Modeling" ad (well, that's what it looks like to me): https://www.sumedhbasani.com/


And since I posted this on the Life Insurance Agent Discussion page, I was encouraged by another poster to report them to the state securities regulator. After seeing what I saw... I went ahead and sent this email to the State of Ohio Division of Securities:

This was what I sent:

To whom it may concern:

My name is David Kinder and I am a life insurance agent in California.

I am writing to you regarding Basani Financial.

Per this link here, they are in Ohio: https://www.sumedhbasani.com/
1440 Rockside Road Suite 118
Parma Ohio
44134

Tel: 216-400-0401

This is their “company” website (with no address listed):
https://www.basanifinancial.com/

This was a paid Forbes advertisement that was used as a “credibility piece” for recruiting my new but not-yet-licensed friend. I wonder if it’s being used as a credibility piece for investors?

https://www.forbesindia.com/.../sumedh-basani-the.../60173/1

I was looking at their website, and they supposedly offer Wealth Management (which can mean anything), Investments, and “Fixed Variable annuities”.

There is no broker/dealer listed nor any affiliation with any Registered Investment Advisor firm.

There’s a page on their site listing their team members, and I couldn’t find a single registered rep or IAR on BrokerCheck.

They were attempting to recruit a new friend of mine who is studying for his insurance license, but with this basic lack of compliance knowledge, maybe something else is up?

I know that Ponzi schemes and other scams could be working like this, and this could fit that kind of profile.

I wouldn’t be doing my job as a good “industry citizen” if I didn’t at least send an email and hope that it’s nothing.

I posted my concerns about this firm in a private Facebook group and I was encouraged to contact the state securities regulators… so here I am.

I don’t know anything more than what I’ve shared with you. I hope this ends up being nothing.

Thank you for your attention to this.

 

[elitemind]

And that's why I love the "America Greed" show.

If they are pushing insurance products is one thing, but pushing Wealth Management & Investments without being registered...Red Flags!!

 

[DHK]

If they are pushing insurance products is one thing, but pushing Wealth Management & Investments without being registered...Red Flags!!

It's just harder to spot with those who are registered...

Inland Empire Man Arrested on Wire Fraud Charge that He Engineered $10 Million Ponzi Scheme Targeting Elderly and Retired Victims

 

[scagnt83]

Good luck with that. I once tried reporting a premium finance scheme here in SC. They wouldnt even take a report... BECAUSE IM AN AGENT!! In SC, they only take reports of wrongdoing from consumers. There is no avenue for agents to report other agents who are breaking the law.

Eventually the state AG issued them a cease and desist order on the loan business. But to my knowledge nobody lost their license.

 

[DHK]

Makes sense. I get it. At least I sent the email and now it's on them.

 

[TheAnnuityCOWBOY]

Yeah... I'm THAT guy.

That guy who wastes hours of your day being preachy to strangers for no benefit other than a self righteous dopamine kick?

Yeah we were aware.

Maybe just report the guy and move on?

 

[DHK]

That guy who wastes hours of your day being preachy to strangers for no benefit other than a self righteous dopamine kick?

Yeah we were aware.

Maybe just report the guy and move on?

You're still here? Shows how often I bother to even pay you any attention, let alone the rest of this thread.

 

[Allen Trent]

That guy who wastes hours of your day being preachy to strangers

I have never let someone else waste hours of my day. If you are letting strangers waste hours of your day, that is on you, not them.

In an ironic twist, you are being preachy & self righteous to a stranger on how they should spend their time

 

[TheAnnuityCOWBOY]

I have never let someone else waste hours of my day. If you are letting strangers waste hours of your day, that is on you, not them.

In an ironic twist, you are being preachy & self righteous to a stranger on how they should spend their time

Lol so are you!

My entire business model is about being different than the dinosaurs. Coming here helps build my resolve, reminding me why others fail and why I will succeed

Commenting takes 10 seconds as you know

 

[DHK]

Lol so are you!

My entire business model is about being different than the dinosaurs. Coming here helps build my resolve, reminding me why others fail and why I will succeed

Commenting takes 10 seconds as you know

And not thinking before you type takes even less time!