| Outstanding advise. I just had a meeting for a Job. Flags 2 and 4 were there already. Unclear business model. I have a PhD. While this does not make me necessarily smart, I have an insight and understanding of many industries. If I don't understand you business in a few sentences, you are either a fraud or are much much smarter than me. I give you a few more red flags, but remember, this are red flags, not proof of fraud. 1. Operating over many jurisdictions. 2. Opaque payments/salaries. Either to good to be true or commission based. 3. People who don't understand numbers and often are off by a magnitude. The stock is worth 5 bucks, could go up 200 times and then ist 10k per stock. Company is worth now X billion, could be 200 times more. 200 times? We are taking market capitalization of the biggest players here, is this even possible for this specific industry? 4. Mentioning big names. Studied at MIT etc. (but very likely did not) Or for low lever frauds, build trust by assigning with law enforcement. (My farther works for the police, is a judge etc.) 5. If you know an industry you know the stuff, you know the numbers and you are never caught off guard by a question. |