The Vigilant Investor

September 15, 2011

Every year "Americans lose $40 billion...to investment fraud," an amount, Huddleston (CEO, Investor's Watchdog) argues, that is more than any agency can monitor. It's up to individual investors, then, to protect themselves and their investments by remaining on the lookout for con artists. Huddleston divides his discussion into two parts, the first focusing on the types of fraud one may encounter, and the second focusing specifically on the U.S. securities industry. With a variety of examples and stories of real people, he considers archetypal con artists and shows how investors can avoid their traps. Particularly valuable is the chapter that breaks down the alphabet soup of designations used by financial advisers and other money managers and details the obligations of these professionals to the investor. VERDICT A great addition to the bookshelf of any investor. Huddleston's examples help simplify these complex issues, and the "Due Diligence for the Vigilant" sections at the end of each chapter provide a quick summary and key takeaways for easy use.--Elizabeth Nelson, UOP Lib., Des Plaines, IL

Copyright 2011 Library Journal, LLC Used with permission.

July 1, 2011
With Americans losing more than $40 billion annually to investment fraud, former SEC enforcer Huddleston brings more than 20 years' experience in fraud investigation to advising how to protect oneself from unscrupulous scammers. His book contains numerous actual accounts of scams so clever that even intelligent and educated people fell prey to themthe likes of Ponzi schemes and less-famous con games that promised returns on investments that were above average but not unrealistic enough to generate suspicion. He shows how to spot typical con artists, such as the Fibber, who covers up his losses, and how to avoid the Bungler by investigating his background and trading turnover rate. The second half of the book explores the U.S. securities industry and exposes fraud related to brokerage firms and investment advisors. Each chapter begins with the engaging true story of a scammer or a victim and ends with due diligence for the vigilant tips and key points of the chapter. A good investment for readers seeking to protect their financial assets.(Reprinted with permission of Booklist, copyright 2011, American Library Association.)