Wednesday AM June 24th, 2009

The author of a book on business scandals says individual investors should not be scared-off by the alleged financial misdeeds of people like Bernie Madoff and R. Allen Stanford. Jack Williams reports.

image of the book cover Robbed At Pen Point

Attorney Randy Johnston wrote Robbed At Pen Point, a book about white collar crime and how easy it is for small investors to get ripped-off. He says the Madoff and Stanford sagas simply mean people should pay closer attention to how their money is invested.

“Nobody cares as much about your money as you do. If you ignore it, someone else is going to get it. So there is no check annually or check twice a year, you’ve got to check all the time. It’s got to be a priority for you.”   

Johnston, who’s from Dallas, says investors should not think that they’ll always lose to smarter money crooks. He says it just takes some extra work to keep your money. 

“Until keeping your money is as big a priority for you as stealing it from you is for the crooks, you’re going to lose money. When your priority is as high as theirs, then you’re going to keep your money.”

His book was actually written before the Madoff and Stanford scandals, but Johnston says much of the advice still applies.