In the early 2000’s, a friend of a friend started an investment club. If you’re not familiar with the term, the SEC says:
An investment club is generally a group of people who pool their money to invest together.
To participate in the club, you would send him money each month. The group would choose and buy stocks. And ideally you’d make a profit.
Nothing could go wrong there, right?
At the time, I was in my early 20s. I knew I should be doing something with investing or stocks or the stock market, but I didn’t know what. Here was someone who supposedly knew; he was someone I liked and trusted, so I started sending him money every month. (I didn’t participate in the group otherwise and didn’t help choose the stocks.)
At some point I stopped sending him money and lost track of how much I had sent.
A few years later I got an email inquiring how much I had invested. The leader of the club was in trouble for embezzlement.