Investment Education – 117 Get it in Writing

Introduction

After four decades and thousands of deals, I’ve seen the same story countless times: an investment goes bad, and suddenly everyone has a different version of what was promised. “That’s not what you said,” “You misunderstood me,” “I never agreed to that.”

Here’s what most investors learn too late: the difference between getting your money back and losing everything comes down to one principle—get it in writing.

Why Verbal Promises Are Worthless

Picture this: A polished sponsor pitches you the deal of a lifetime. They answer your questions confidently, their track record sounds impressive, and you shake hands. Then reality hits—no returns, stalled projects, unanswered calls. When you confront them, they claim they never made those promises.

This is why I demand written documentation for everything that matters. Real legal documents create accountability. But most investors make a fatal mistake: they accept verbal assurances for details not covered in formal paperwork. If it influences your investment decision, get it in writing.

Criminal vs. Civil Fraud: Know the Difference

Criminal Fraud: The Gold Standard This involves deliberate deception with concrete evidence—falsified documents, money disappearing into personal accounts. You don’t need to prove damages, just that the crime occurred. The payoff? Prison time.

I’ve pursued criminal cases with one goal: putting criminals in federal prison. I use their own documents, bank records, and wire transfers to build airtight cases. That gets people’s attention.

Civil Fraud: The Uphill Battle Here you must prove both fraudulent intent and specific damages. Not only must you show they lied, but exactly how much it cost you. The defense will question your due diligence: Did you hire professionals? Visit the site? If you did nothing to protect yourself, courts often view losses as self-inflicted.

The Essential Questions

Demand written answers to these critical questions:

Background Check

• Has anyone in your company been sued for fraud?
• Any cease and desist orders or pending lawsuits?
• Any bankruptcies in your background?

Follow the Money

• Who really owns this company?
• What’s your actual track record?
• What did you pay for this asset?
• What fees are you collecting?

Here’s a common scheme: A sponsor raises $10 million to “buy” a building for $10 million, then negotiates the price down to $9.2 million and pockets $800,000. You just paid an undisclosed fee while reducing your returns.

Your Most Powerful Tool: Saying “No”

After 40 years, I know your greatest power isn’t your wealth or connections—it’s your ability to say “No.”

No to sponsors who won’t answer questions in writing. No to deals lacking transparency. No to investments that don’t pass due diligence.

This word has saved me millions. Make it your best friend.

Fraud vs. Incompetence

Not every failed deal is fraud. If you invest with an inexperienced sponsor who disclosed their limited track record, that’s business risk, not fraud. Courts expect accredited investors to act sophisticated—if you ignore red flags, don’t expect sympathy.

The Bottom Line

The investment world contains both well-meaning amateurs and calculating criminals. Your job is distinguishing between them through proper due diligence and written documentation.

Legitimate sponsors welcome tough questions and provide written answers about their background and practices. Those who dodge questions or refuse written commitments are showing you exactly who they are—believe them and walk away.

Whether investing in alternatives or traditional markets, your protection depends on demanding accountability in writing and having the courage to say no when it’s not provided.

Don’t let anyone rush your decisions. Don’t accept verbal promises on important details. Never send money to someone who won’t answer basic questions about who they are and what they do.