Retirees wiped out, lose millions: SEC (invested with KNI Investments)

[gibraltar72]

3. Greed my friend,

Greed gets em every time. I once had a bank VP ask me to come to his office he told me he had just inherited $150,000 and wished to invest. I came back a week or so later and showed him a mutual fund that had a track record of 12%. I didn't hear anything from him for about 6 weeks. I got a call asking if I knew anything about Baldwin United. I worked for a very large financial institution and we got a heads up when SEC was making a move on a company. I said I heard they were insolvent. Pause then ask you didn't put your money with them did you? He defiantly said they showed me 16 percent. He's looking at a letter that tells him not to give them any more money. He's effectively lost $150,000 and he's justifying putting his money in a piano company turned investment company. A VP of a bank should know better. But greed did him in.