We Told You So: The Crypto Crash, AI Hype, and Other Predictions That Aged Like Fine Wine
Download MP3Episode Description
Sometimes being right doesn't feel good - especially when it involves people losing money. In this episode, we revisit our predictions and warnings that unfortunately came true, starting with a deep dive into the NRIA bankruptcy case that we covered over a year ago.
Key Points Covered:
- NRIA Warning Signs - We featured National Real Estate Investment Advisors (NRIA) in our May 23, 2021 video, highlighting troubling red flags including executive backgrounds and questionable business practices
- Bankruptcy Filing - NRIA filed Chapter 11 bankruptcy in June 2022, validating our concerns about their unsustainable business model
- Business Model Concerns - The company appeared to be using new investor money to pay existing investors, which we identified as a potential "house of cards" scenario
- High-Profile Marketing - Despite their issues, NRIA maintained a significant advertising presence on CNBC and XM Radio, collecting tens of millions from investors
- Claimed Assets - At their peak, NRIA claimed to manage over $500 million in investor funds
- Investor Protection Gap - Unlike bank deposits, these investments aren't protected by FDIC or other government insurance programs
- Chapter 11 Explained - The bankruptcy filing means the company lacks sufficient assets to cover their liabilities, possibly due to excessive advertising and development spending
- Recovery Plans - Company spokesperson claims they plan "full or substantial recovery" for stakeholders through property liquidation and contract termination
- Ponzi Scheme Characteristics - The company later admitted to using new investor cash to pay existing ones, fitting the classic definition of a Ponzi scheme
- Unrealistic Returns - NRIA promised 21% returns, a major red flag when combined with their funding structure
- Staff Reductions - In their final year, the company cut from 60 employees down to just 8, with reduced pay for remaining staff
- Red Flags for Investors - Companies offering consistently high returns regardless of market conditions should raise immediate concerns
- No Criminal Charges - While the company filed bankruptcy, there are currently no criminal investigations or charges filed
- Ongoing Investigation - We continue monitoring this story as it develops through the bankruptcy process
Contact Information
If you have questions about potential investments or situations where you're not getting expected returns, reach out through our website. We'll continue following stories like this to help protect investors from similar situations.
If you have questions about potential investments or situations where you're not getting expected returns, reach out through our website. We'll continue following stories like this to help protect investors from similar situations.
