Frauds in high return investments/Ponzi schemes. Who is responsible, the investor or the Government?We have read of the various attractive investment companies shutting down after a few years and swindling the entire funds collected that run into crores. In Bangalore, this month, we have had the IMA group scam, hundreds of crores duped, nearly a lakh customers left in a lurch.
Many such scams hit the headlines, apart from the investors losing money, the logistical burden on the state resources are huge and cases go on for years. If we analyze the root cause, it often boils down to the greed or temptation of earning more (much above the FD interest rates). Isn't this something like stocks and shares? if you gain you keep it, if you lose, you bear the loss. If knowingly people invest, how can they cry foul when the scamsters run away with the money?
As far as Ponzi schemes are considered, who should be held responsible? The government authorities for letting these scams flourish with the blessings of the local influential people? The investors who for the want of more returns deposit in such unauthorized schemes? the brains behind the scam for exploiting the desire/greed? the taxpayer for indirectly footing the bill for all the work done by the police/CBI/judiciary for each and every scam?
Why not have a clear draft/white paper for every state stating that the Government will NOT entertain complaints if such Ponzi schemes go bust?