couple of fish. The few in CEP devoured that which had belonged to the multitude.
As reported in the Henderson Time News , August 11, 2006, in an article titled “Nervous Investors Consider Restitution Plots,” one investor reported that “. . . he invested a ‘substantial‘ amount of money with the business over the last two years. He said he dealt primarily with Alex Klosek, who acted as a trustee in taking his money and placing it into investments.” Another “. . . invested $200,000 of her retirement savings” with CEP. Also, in the Henderson Times-News , February 20, 2010, in an article titled “Noel’s Victims Focus of Testimony,” still another investor testified at the trial that “. . . she and her husband not only invested with CEP, but also put $50,000 into Noel’s startups International Mineral Exchange and later Titan Composites.” Two other investors who collectively lost $194,000 testified at the trial with regard to their losses.
“AND THEN THEY COULD MAKE A DECISION”
People make decisions throughout the day. They have to decide when to get out of bed, what to wear, what to eat, where to go, and what to do. Influencing another person’s cognition toward a predetermined outcome—persuasion—is an art. A criterion for success is the ability to affect the nervous system of others on a continuing basis. While that statement may sound a bit Machiavellian, if a car salesperson cannot persuade people on a regular basis to purchase a car, then the dealership will soon replace him with someone who can. If a supervisor cannot motivate the division personnel to more excellent productivity, then she will most likely find herself out on the street.
People make decisions continually, and they make those decisions on the self-interest principle. We select what we believe is the best watermelon in the bin, the best spouse with whom to share a life, the best home for our family and the best investment vehicle for our money.
All of CEP’s sales presentation endeavors were designed to convince others that entrusting them with their money was the best investment they could make with their money.
CEP had also endeavored to get people to “believe.” Those people believed to the point that they collectively turned over more than seven million dollars of their money to those who had made a presentation. However, just as with Jesus’ proposal, not everyone believed. In the previously referenced Henderson Times-News article of August 11, 2006, a certified financial planner noted, “I recommended several of my clients not to go there, because I questioned the return on the yields that were being promised. People get fliers to go to these seminars and if it sounds too good to be true, it probably is.”
Ultimately, to paraphrase the writings of the poet William Cowper, found in this chapter heading, over one hundred trusting investors would find themselves dropping their buckets into the empty CEP well. A well that had been drained dry by those who had undertaken to first gain trust and then betray that trust in the extreme. Gaining trust is a process that, in and of itself, makes no distinction as to the wisdom of placing trust in those who would seek to have it. Rather, it is the motive of the heart (good versus evil, give versus take) within those who would win the minds and hearts of others that is the distinguishing factor.
During the trial, when Alex was questioned as to the terminology regarding taking other investors’ money and making payment to still other investors, the following transpired:
Q. What’s that called?
A. That’s called a Ponzi scheme.
NOTE : What is a Ponzi scheme? “A Ponzi scheme is a fraudulent, investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors” ( http://en.wikipedia.org/wiki/Ponzi_scheme).
THOUGHTS, COMMENTS AND ANALYSIS
What are your
As reported in the Henderson Time News , August 11, 2006, in an article titled “Nervous Investors Consider Restitution Plots,” one investor reported that “. . . he invested a ‘substantial‘ amount of money with the business over the last two years. He said he dealt primarily with Alex Klosek, who acted as a trustee in taking his money and placing it into investments.” Another “. . . invested $200,000 of her retirement savings” with CEP. Also, in the Henderson Times-News , February 20, 2010, in an article titled “Noel’s Victims Focus of Testimony,” still another investor testified at the trial that “. . . she and her husband not only invested with CEP, but also put $50,000 into Noel’s startups International Mineral Exchange and later Titan Composites.” Two other investors who collectively lost $194,000 testified at the trial with regard to their losses.
“AND THEN THEY COULD MAKE A DECISION”
People make decisions throughout the day. They have to decide when to get out of bed, what to wear, what to eat, where to go, and what to do. Influencing another person’s cognition toward a predetermined outcome—persuasion—is an art. A criterion for success is the ability to affect the nervous system of others on a continuing basis. While that statement may sound a bit Machiavellian, if a car salesperson cannot persuade people on a regular basis to purchase a car, then the dealership will soon replace him with someone who can. If a supervisor cannot motivate the division personnel to more excellent productivity, then she will most likely find herself out on the street.
People make decisions continually, and they make those decisions on the self-interest principle. We select what we believe is the best watermelon in the bin, the best spouse with whom to share a life, the best home for our family and the best investment vehicle for our money.
All of CEP’s sales presentation endeavors were designed to convince others that entrusting them with their money was the best investment they could make with their money.
CEP had also endeavored to get people to “believe.” Those people believed to the point that they collectively turned over more than seven million dollars of their money to those who had made a presentation. However, just as with Jesus’ proposal, not everyone believed. In the previously referenced Henderson Times-News article of August 11, 2006, a certified financial planner noted, “I recommended several of my clients not to go there, because I questioned the return on the yields that were being promised. People get fliers to go to these seminars and if it sounds too good to be true, it probably is.”
Ultimately, to paraphrase the writings of the poet William Cowper, found in this chapter heading, over one hundred trusting investors would find themselves dropping their buckets into the empty CEP well. A well that had been drained dry by those who had undertaken to first gain trust and then betray that trust in the extreme. Gaining trust is a process that, in and of itself, makes no distinction as to the wisdom of placing trust in those who would seek to have it. Rather, it is the motive of the heart (good versus evil, give versus take) within those who would win the minds and hearts of others that is the distinguishing factor.
During the trial, when Alex was questioned as to the terminology regarding taking other investors’ money and making payment to still other investors, the following transpired:
Q. What’s that called?
A. That’s called a Ponzi scheme.
NOTE : What is a Ponzi scheme? “A Ponzi scheme is a fraudulent, investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors” ( http://en.wikipedia.org/wiki/Ponzi_scheme).
THOUGHTS, COMMENTS AND ANALYSIS
What are your
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