Friday, January 7, 2011
Monday, January 3, 2011
Going Global East Meets West
Looking for "http://articlesofinterest-kelley.blogspot.com/ "
New Address ... http://goingglobaleastmeetswest.blogspot.com/
New Address ... http://goingglobaleastmeetswest.blogspot.com/
Thursday, December 16, 2010
CYBER CRIME - BE SMART - BE SAFE - AND - LOOKOUT FOR WEB SITES THAT PREY ON UNSUSPECTING, POTENTIAL VICTIMS ...
http://www.fbi.gov/about-us/investigate/cyber/cyberKey Priorities- Computer Intrusions- Innocent Images: Online Predators- Anti-Piracy/Intellectual Property Rights- Fraud: Internet Crime Complaint Center
Initiatives & Partnerships- Cyber Action Teams- Computer Crimes Task Forces- Identity Theft- InfraGard: Protecting Infrastructure- National Cyber Investigative Joint Task Force- National Cyber-Forensics & Training Alliance- Strategic Alliance Cyber Crime Working Group
Cyber Threats & Scams- Threat Overview: Speech- E-Scams & Warnings- Common Internet Frauds- Internet Crime Reports- National Cyber Alert System- Peer-to-Peer Networks - Social Networking Sites
Tuesday, December 14, 2010
I am not bound to win, but I am bound to be true. I am not bound to succeed, but I am bound to live by the light that I have ...
I am not bound to win, but I am bound to be true. I am not bound to succeed, but I am bound to live by the light that I have. I must stand with anybody that stands right, and stand with him while he is right, and part with him when he goes wrong ~ Abraham Lincoln The Spider and the Fly poem by Mary Howitt
Step into my parlour?" said the Spider to the Fly,
'Tis the prettiest little parlour that ever you did spy;
The way into my parlour is up a winding stair,
And I've a many curious things to shew when you are there."
Oh no, no," said the little Fly, "to ask me is in vain,
For who goes up your winding stair can ne'er come down again."
"I'm sure you must be weary, dear, with soaring up so high;
Will you rest upon my little bed?" said the Spider to the Fly.
"There are pretty curtains drawn around; the sheets are fine and thin,
And if you like to rest awhile, I'll snugly tuck you in!"
Oh no, no," said the little Fly, "for I've often heard it said,
They never, never wake again, who sleep upon your bed!"
Said the cunning Spider to the Fly, " Dear friend what can I do,
To prove the warm affection I 've always felt for you?
I have within my pantry, good store of all that's nice;
I'm sure you're very welcome -- will you please to take a slice?"
"Oh no, no," said the little Fly, "kind Sir, that cannot be,
I've heard what's in your pantry, and I do not wish to see!"
"Sweet creature!" said the Spider, "you're witty and you're wise,
How handsome are your gauzy wings, how brilliant are your eyes!
I've a little looking-glass upon my parlour shelf,
If you'll step in one moment, dear, you shall behold yourself."
"I thank you, gentle sir," she said, "for what you 're pleased to say,
And bidding you good morning now, I'll call another day."
The Spider turned him round about, and went into his den,
For well he knew the silly Fly would soon come back again:
So he wove a subtle web, in a little corner sly,
And set his table ready, to dine upon the Fly.
Then he came out to his door again, and merrily did sing,
"Come hither, hither, pretty Fly, with the pearl and silver wing;
Your robes are green and purple -- there's a crest upon your head;
Your eyes are like the diamond bright, but mine are dull as lead!"
Alas, alas! how very soon this silly little Fly,
Hearing his wily, flattering words, came slowly flitting by;
Your eyes are like the diamond bright, but mine are dull as lead!"
Alas, alas! how very soon this silly little Fly,
Hearing his wily, flattering words, came slowly flitting by;
With buzzing wings she hung aloft, then near and nearer drew,
Thinking only of her brilliant eyes, and green and purple hue --
Thinking only of her brilliant eyes, and green and purple hue --
Thinking only of her crested head -- poor foolish thing! At last,
Up jumped the cunning Spider, and fiercely held her fast.
Up jumped the cunning Spider, and fiercely held her fast.
He dragged her up his winding stair, into his dismal den,
Within his little parlour -- but she ne'er came out again!
And now dear little children, who may this story read,
To idle, silly flattering words, I pray you ne'er give heed:
Unto an evil counsellor, close heart and ear and eye,
And take a lesson from this tale, of the Spider and the Fly.
Within his little parlour -- but she ne'er came out again!
And now dear little children, who may this story read,
To idle, silly flattering words, I pray you ne'er give heed:
Unto an evil counsellor, close heart and ear and eye,
And take a lesson from this tale, of the Spider and the Fly.
Monday, December 13, 2010
Financial Fraud Enforcement Task Force Announces Results of Largest-Ever Nationwide Operation Targeting Investment Fraud
“With this operation, the Financial Fraud Enforcement Task Force is sending a strong message,” said Attorney General Holder. “To the public: be alert for these frauds, take appropriate measures to protect yourself, and report such schemes to proper authorities when they occur. And to anyone operating or attempting to operate an investment scam: cheating investors out of their earnings and savings is no longer a safe business plan - we will use every tool at our disposal to find you, to stop you, and to bring you to justice.”December 09, 2010
Financial Fraud Enforcement Task Force Announces Results of Largest-Ever Nationwide Operation Targeting Investment Fraud
Please go to link and read this ~News release: "Attorney General Eric Holder announced the results of Operation Broken Trust, a nationwide operation organized by the Financial Fraud Enforcement Task Force to target investment fraud.
To date, the operation has involved enforcement actions against 343 criminal defendants and 189 civil defendants for fraud schemes that harmed more than 120,000 victims throughout the country.
The operation’s criminal cases involved more than $8.3 billion in estimated losses and the civil cases involved estimated losses of more than $2.1 billion. Operation Broken Trust is the first national operation of its kind to target a broad array of investment fraud schemes that directly prey upon the investing public."
http://www.justice.gov/opa/pr/2010/December/10-ag-1390.html
Financial Fraud Enforcement Task Force Announces Results of Largest-Ever Nationwide Operation Targeting Investment Fraud
Please go to link and read this ~News release: "Attorney General Eric Holder announced the results of Operation Broken Trust, a nationwide operation organized by the Financial Fraud Enforcement Task Force to target investment fraud.
To date, the operation has involved enforcement actions against 343 criminal defendants and 189 civil defendants for fraud schemes that harmed more than 120,000 victims throughout the country.
The operation’s criminal cases involved more than $8.3 billion in estimated losses and the civil cases involved estimated losses of more than $2.1 billion. Operation Broken Trust is the first national operation of its kind to target a broad array of investment fraud schemes that directly prey upon the investing public."
http://www.justice.gov/opa/pr/2010/December/10-ag-1390.html
Sunday, December 12, 2010
AVOIDING TRUST SCAMS - ALWAYS ASK THE ADVICE OF AN ATTORNEY ~ It's the scam artist that takes your money - Most Attorney Consultations are "Free"
AVOIDING TRUST SCAMS
The Castleman Law Firm
A Professional Corporation
5870 Stoneridge Mall Road, Ste. 207
Pleasanton, California 94588
(925) 463-2221
Fax (925) 463-0328
There are good trusts and there are bad trusts. Good trusts are part of a process used by legitimate estate planners and their clients to control the disposition of assets, avoid probate, reduce administration costs, save estate taxes, and preserve family wealth for future generations. This article is not about the good trusts. It is about bad trusts.
There are two main categories of bad trusts: scam trusts and mill trusts.
Scam Trusts
What are scam trusts? These are so called "trusts" or "contracts" that are promoted by scam artists who claim that their documents and plans will allow individuals and, in some cases businesses, to avoid or significantly reduce all taxes, including income taxes. The promoters also claim that their plans, for which they charge a hefty fee, will make your assets unreachable by creditors. They often use a complex structure that involves the "irrevocable" transfer of your assets to one or more business or trust entities controlled by you. The promoters claim that the arrangement will significantly reduce or eliminate not only estate taxes but also income taxes. Scam trusts are marketed through high pressure seminars, by door-to-door salesmen, and on the Internet. In some cases, they are recommended by well meaning but poorly informed CPA's, financial advisors, friends, or business acquaintances. The marketing techniques can be very persuasive, and are aimed at all classes of people. I have seen doctors, dentists, accountants, and financial advisors fall for the hype.
How can you recognize them? Remember the following four tests:
The "Name" Test: The name of the trust is often a hint that something is amiss. The scam trusts have a variety of forms and names such as: "Constitutional Trusts," "Pure Trusts," "Common Law Trusts," "Unincorporated Business Associations," "Asset Protection Trusts," "Business Trusts" (not to be confused with legitimate Massachuset Business Trusts), and "Family Trusts" (not to be confused with legitimate revocable family trusts).
The "It Seems Too Good To Be True" Test: If the trust is promoted as one that will reduce or eliminate your personal income tax, watch out. Almost all of the scam trusts purport to allow a person or a family to arrange their assets and business affairs in a manner that will avoid or substantially reduce income taxes, change nondeductible personal expenses into deductible business expenses, or redirect all, or most of, a person's ordinary income into retirement savings.
The "Authority Approval" Test: The promotional materials that are used to help sell scam trusts often contain incorrect references to the Constitution, as well as references to court cases that have been overturned or changed by statute. They often cite scripture. The promoters of these fraudulent trusts often incorrectly associate the names of prominent families, such as Kennedy or Rockefeller, with the trusts that they are trying to peddle. Here is part of an actual sales pitch written by a scam trust purveyor:
You can LEGALLY avoid excessive taxation in order to build a financially secure estate; dramatically reduce your liabilities; gain the ultimate in personal and business privacy; and eliminate all the estate and inheritance taxes plus probate costs. This previously "secret" method has been successfully utilized by the nation's wealthiest families: the Rockefellers, the Hunts, the Kennedys and others, plus leading oil and industrial companies. All of these have demonstrated that it is a POSSIBLE, LEGAL, and EFFECTIVE solution to avoid estate shrinkage. First, this is possible because the United States of America is founded on the principle that the peoples' unalienable rights are originally received directly from our Creator! This is why we acknowledge our country to be a "NATION UNDER GOD" ("of the people, by the people, and for the people").
Embodied in this principle is the "Key" to total protection of your personal and business assets - the Constitution. It recognizes our inalienable rights by the use of the Law of the land by which we protect our freedoms, and our property.
The "Dumb Advisor" Test: In almost all cases the promoters of scam trusts will caution you against having your CPA or attorney review the documents that the promoters want to sell to you. They often say that CPA's and attorneys simply do not understand them, or have a vested interest or bias against them.
What is wrong with scam trusts? BEWARE!
The Castleman Law Firm
A Professional Corporation
5870 Stoneridge Mall Road, Ste. 207
Pleasanton, California 94588
(925) 463-2221
Fax (925) 463-0328
There are good trusts and there are bad trusts. Good trusts are part of a process used by legitimate estate planners and their clients to control the disposition of assets, avoid probate, reduce administration costs, save estate taxes, and preserve family wealth for future generations. This article is not about the good trusts. It is about bad trusts.
There are two main categories of bad trusts: scam trusts and mill trusts.
Scam Trusts
What are scam trusts? These are so called "trusts" or "contracts" that are promoted by scam artists who claim that their documents and plans will allow individuals and, in some cases businesses, to avoid or significantly reduce all taxes, including income taxes. The promoters also claim that their plans, for which they charge a hefty fee, will make your assets unreachable by creditors. They often use a complex structure that involves the "irrevocable" transfer of your assets to one or more business or trust entities controlled by you. The promoters claim that the arrangement will significantly reduce or eliminate not only estate taxes but also income taxes. Scam trusts are marketed through high pressure seminars, by door-to-door salesmen, and on the Internet. In some cases, they are recommended by well meaning but poorly informed CPA's, financial advisors, friends, or business acquaintances. The marketing techniques can be very persuasive, and are aimed at all classes of people. I have seen doctors, dentists, accountants, and financial advisors fall for the hype.
How can you recognize them? Remember the following four tests:
The "Name" Test: The name of the trust is often a hint that something is amiss. The scam trusts have a variety of forms and names such as: "Constitutional Trusts," "Pure Trusts," "Common Law Trusts," "Unincorporated Business Associations," "Asset Protection Trusts," "Business Trusts" (not to be confused with legitimate Massachuset Business Trusts), and "Family Trusts" (not to be confused with legitimate revocable family trusts).
The "It Seems Too Good To Be True" Test: If the trust is promoted as one that will reduce or eliminate your personal income tax, watch out. Almost all of the scam trusts purport to allow a person or a family to arrange their assets and business affairs in a manner that will avoid or substantially reduce income taxes, change nondeductible personal expenses into deductible business expenses, or redirect all, or most of, a person's ordinary income into retirement savings.
The "Authority Approval" Test: The promotional materials that are used to help sell scam trusts often contain incorrect references to the Constitution, as well as references to court cases that have been overturned or changed by statute. They often cite scripture. The promoters of these fraudulent trusts often incorrectly associate the names of prominent families, such as Kennedy or Rockefeller, with the trusts that they are trying to peddle. Here is part of an actual sales pitch written by a scam trust purveyor:
You can LEGALLY avoid excessive taxation in order to build a financially secure estate; dramatically reduce your liabilities; gain the ultimate in personal and business privacy; and eliminate all the estate and inheritance taxes plus probate costs. This previously "secret" method has been successfully utilized by the nation's wealthiest families: the Rockefellers, the Hunts, the Kennedys and others, plus leading oil and industrial companies. All of these have demonstrated that it is a POSSIBLE, LEGAL, and EFFECTIVE solution to avoid estate shrinkage. First, this is possible because the United States of America is founded on the principle that the peoples' unalienable rights are originally received directly from our Creator! This is why we acknowledge our country to be a "NATION UNDER GOD" ("of the people, by the people, and for the people").
Embodied in this principle is the "Key" to total protection of your personal and business assets - the Constitution. It recognizes our inalienable rights by the use of the Law of the land by which we protect our freedoms, and our property.
The "Dumb Advisor" Test: In almost all cases the promoters of scam trusts will caution you against having your CPA or attorney review the documents that the promoters want to sell to you. They often say that CPA's and attorneys simply do not understand them, or have a vested interest or bias against them.
What is wrong with scam trusts? BEWARE!
Trusts and business arrangements that are marketed as a way of avoiding all or a substantial amount of income tax are almost always illegal. These are classified as "abusive arrangements" by the IRS. Any person who creates one of these trusts will, when caught by the IRS, have to pay all back taxes owed, interest, and serious penalties. Criminal sanctions will be imposed upon all who participate in the promotion of abusive trusts. A transfer of real estate to a scam trust may result in a reassessment by the county appraiser resulting in significantly greater property taxes. Once you have entered into a scam trust, and perhaps transferred title to some or all of your assets, it can be very expensive to undo the arrangement.
STAY AWAY FROM SCAM TRUSTS.
Mill Trusts
Now, let's consider mill trusts.
What are mill trusts? I define a mill trust as a generic "one size fits all" document ostensibly designed to avoid probate and save estate taxes. Often the producer of the document is not a lawyer, but may claim to have the document either "created by," "reviewed by," or "approved by" a lawyer.
How can you recognize mill trusts? Again, there are four tests
The "Lack of Counsel" Test: Proper estate planning requires substantive individual legal counseling. Mill trusts are usually produced after the "client" has filled out a simple form questionnaire (often of the "check the box" type). The client is usually given very little counseling. Often the mill trust client meets only with a "paralegal," a CPA, or a financial advisor, but not with an attorney who specializes in estate planning.
The "Limited Purpose" Test: Mill trusts are often prepared solely for the purposes of avoiding probate and/or saving estate taxes. No consideration is giving to protection in the case of incompetency, planning protective distributions for descendants, or tailoring distributions for families with children or grandchildren of different marriages. No consideration is given to integrating life insurance and retirement funds with the dispositions provided for in the trust documents.
The "Lack of Funding" Test: Most mill trusts do not work because they are not properly funded, meaning that assets are not transferred into the trust. The client is usually given no help in effecting the transfers. As a result, the majority of mill trusts are not properly funded. When a trust is not properly funded, it does not work.
The "Cheap" Test: Mill trusts usually range in cost from $350 to less than $1000. What you get is what you pay for--not very much.
What is wrong with mill trusts?
Mill Trusts
Now, let's consider mill trusts.
What are mill trusts? I define a mill trust as a generic "one size fits all" document ostensibly designed to avoid probate and save estate taxes. Often the producer of the document is not a lawyer, but may claim to have the document either "created by," "reviewed by," or "approved by" a lawyer.
How can you recognize mill trusts? Again, there are four tests
The "Lack of Counsel" Test: Proper estate planning requires substantive individual legal counseling. Mill trusts are usually produced after the "client" has filled out a simple form questionnaire (often of the "check the box" type). The client is usually given very little counseling. Often the mill trust client meets only with a "paralegal," a CPA, or a financial advisor, but not with an attorney who specializes in estate planning.
The "Limited Purpose" Test: Mill trusts are often prepared solely for the purposes of avoiding probate and/or saving estate taxes. No consideration is giving to protection in the case of incompetency, planning protective distributions for descendants, or tailoring distributions for families with children or grandchildren of different marriages. No consideration is given to integrating life insurance and retirement funds with the dispositions provided for in the trust documents.
The "Lack of Funding" Test: Most mill trusts do not work because they are not properly funded, meaning that assets are not transferred into the trust. The client is usually given no help in effecting the transfers. As a result, the majority of mill trusts are not properly funded. When a trust is not properly funded, it does not work.
The "Cheap" Test: Mill trusts usually range in cost from $350 to less than $1000. What you get is what you pay for--not very much.
What is wrong with mill trusts?
Although mill trusts are not burdened with the illegalities of scam trusts, they are usually a waste of money and not suited for proper estate planning. An unfunded mill trust is a waste of money because assets not transferred to the trust will not be controlled by the trust terms and may have to be probated. Many mill trusts contain provisions which can actually result in increased estate taxes. People who prepare mill trusts almost never take into consideration retirement assets and life insurance proceeds. A failure to integrate retirement fund and insurance policy planning with the overall estate plan can lead to increased taxes and ultimate distributions that are inconsistent with your goals.
Proper estate planning requires consideration of your specific needs and family goals. When done correctly, much can be accomplished. When done incorrectly, much may be lost.
Proper estate planning requires consideration of your specific needs and family goals. When done correctly, much can be accomplished. When done incorrectly, much may be lost.
Rags to Riches to Rags: Millionaires Who Go Bust ...
It's easier than you think to lose a fortune. But some say they're better off.
NEW YORK (CNN/Money) - Even before he turned in his lucky ticket, William Post had a hunch that winning the $16-million Pennsylvania Lottery jackpot was going to bring him a heap of trouble. He just didn't know how much.
"With my family, (I knew) they were going to do anything to get the money," said Post, 63, who won big.
NEW YORK (CNN/Money) - Even before he turned in his lucky ticket, William Post had a hunch that winning the $16-million Pennsylvania Lottery jackpot was going to bring him a heap of trouble. He just didn't know how much.
"With my family, (I knew) they were going to do anything to get the money," said Post, 63, who won big.
As it turned out, anything included a younger brother who was arrested for hiring a hit man to kill Post. Other siblings, said Post, pestered him until he agreed to invest in various car and restaurant business deals. He says he never saw a dime of it back.
But that wasn't the end.
"I had more lawsuits than you could shake a stick at," said Post.
A former girlfriend sued Post for failing to share winnings. Meanwhile, courts held his money in escrow until Post's debts were settled. Eventually, he auctioned off his winning ticket to pay his bills. All in all, Post says he figures he received about $2 million, part of which he used to buy his three-bedroom Pennsylvania home.
It's about the only thing he has to show for the Lottery winnings. All the money is gone. Legal fees and taxes ate much of the money, says Post. But he's also admitted that he went on a spending spree, too.
Post now lives on $450 monthly Social Security payments and food stamps. He spends much of his day watching classic movies on television. But Post isn't complaining. Now that the money's gone, people leave him alone. His house is quiet.
He's content.
"I've got peace of mind and you never realize how valuable it is until you lose it," he says. "I'm a Roman Catholic so I know that rarely a rich man goes to heaven. The way I see it, I've got a good shot."
He's not the first to lose it all. As it turns out, Post is in good company among lottery winners gone bust. One New Jersey woman even won two lotteries -- for a total of $5.4 million -- but blew threw it all on spending, gifts and gambling. Uncommon? Not really.
Two out of three lose or spend all their winnings within five years, said Stephen Goldbart, co-director of the Money, Meaning and Choices Institute in San Francisco.
Most lottery winners spend all their winnings because they don't make careful plans to save or invest it, he notes.
"The average American lives paycheck to paycheck," he adds. "So when they come into sudden wealth, they have to learn the financial ropes" of planning.
But lottery winners aren't the only ones who botch sudden wealth. Lately, Goldbart and his colleague, Joan Invursky DiFuria, have been counseling dot.com whiz kids who made millions -- then lost it all -- when the tech bubble burst. While many spent their newfound fortune on lavish parties, fancy cars, homes and other toys, most of their money was paper wealth invested in just one or a handful of dot.com stock.
"They didn't protect themselves against change and they didn't diversify," said DiFuria. "It was unexpected that they'd make so much so quickly, and it was unexpected that they'd lose so much so quickly."
For many, the sudden loss packed a bitter punch -- creating pressure to earn new fortunes. Others are stuck in the soul-searching phase, wondering where to now and how to apply their skills toward a meaningful line of work. Still, others adjusted surprisingly well, said DiFuria.
She remembers the day she met with one woman in her late 20's who had just learned that she owed more than $500,000 in taxes on stock options she exercised but never cashed in.
"She had a great attitude," DiFuria said. "She said, 'You know, the money never seemed real to me. I'm a little relieved. My friends won't be pointing at me anymore.' When she drove to work in her new car she felt great because everyone else had one. But when she returned to her middle-class neighborhood, she felt uncomfortable. She felt isolated."
Peter Grandich never felt isolated when he had millions. On the contrary, he loved what money could buy -- a spacious mansion in New Jersey, two race cars, five race horses and lots of time on the golf course.
"I was addicted to the game," said Grandich, a high school dropout who made his fortune on Wall Street. (His first break came when he was a warehouse manager and a security guard told him about a stock tip. Grandich used $7,000 of his family's wedding money and made $20,000).
Grandich eventually became a broker, but because he hated cold calling, he started a newsletter to keep himself busy at work. Again, luck was with Grandich when he moved clients out of the market before it collapsed in October 1987. His bearish call secured Grandich's reputation as the dropout/whiz kid who made good. Grandich was quoted in national papers and appeared on television -- living the good life. He calls it his "arrogant days."
"I was playing golf, making deals. I probably gave more money away in gifts and parties than I dreamed of making when I was a warehouse manager," he said.
Hubris finally got the better of him in 1997, when Grandich had his own firm and, among other things, was raising money for various mining companies. That was when the Bre-X gold mining scandal exploded. Bre-X, a small Canadian mining company, had wowed investors around the world when it claimed to have tapped the world's biggest gold mine deep in the Indonesian jungle, but the find turned out to be a massive hoax. The scandal put a chill on Grandich's business. But instead of calling it quits, he used his own money to prop up his failing deals.
"I lost 75 percent of what I had in less than a year," he recalls. "Some people get suckered by their own actions, their own greed -- that was me."
Grandich was so depressed he even considered suicide, but then worried he wouldn't be able to afford the care if he permanently injured himself. Filled with despair, he started looking for answers.
He drove to Barnes & Noble.
Grandich planned to buy a book on business strategies -- or mental health. But he ended up picking up a Bible. By his own estimates, 25 percent of the Bible's passages dealt with money.
It was a sign. And it led him to start Trinity Financial, Sports & Entertainment Co. -- a financial services business. Grandich's partner is Lee Rouson, the former New York Giants running back and a Christian leader with Sports World Ministries.
The duo now aim to help their clients -- who include players in the National Football League -- make informed, Christian-oriented financial decisions.
As it turns out, there are plenty of young football players who, like Grandich, have made then lost fortunes. In fact the NFL estimates that 78 players have been defrauded at least $42 million in the last three years. In response, the NFL Players Association this year launched a rigorous screening and certification program, with input from the Security and Exchange Commission, for financial advisers who want to register to work with the union's members, including players and coaches. (Note: anyone can call himself a financial planner, so whether you're a star athlete or a weekend warrior, choose your adviser carefully. For some guidance, see the Money lesson on hiring a financial planner.)
Meanwhile, Grandich sees a bright future for himself and his clients.
"I can manage their money but I won't throw up all sorts of big numbers," he says. "They won't have high reward, but they won't have high risk either. If they like the idea of turning $20,000 into $100,000 in five years, I'm not the right person."
Grandich pauses. "I had a tremendous home. I gave away $150,000 one year. I was like a kid in a candy store. But I don't think I had one-tenth the fun [that] I'm having today."
But that wasn't the end.
"I had more lawsuits than you could shake a stick at," said Post.
A former girlfriend sued Post for failing to share winnings. Meanwhile, courts held his money in escrow until Post's debts were settled. Eventually, he auctioned off his winning ticket to pay his bills. All in all, Post says he figures he received about $2 million, part of which he used to buy his three-bedroom Pennsylvania home.
It's about the only thing he has to show for the Lottery winnings. All the money is gone. Legal fees and taxes ate much of the money, says Post. But he's also admitted that he went on a spending spree, too.
Post now lives on $450 monthly Social Security payments and food stamps. He spends much of his day watching classic movies on television. But Post isn't complaining. Now that the money's gone, people leave him alone. His house is quiet.
He's content.
"I've got peace of mind and you never realize how valuable it is until you lose it," he says. "I'm a Roman Catholic so I know that rarely a rich man goes to heaven. The way I see it, I've got a good shot."
He's not the first to lose it all. As it turns out, Post is in good company among lottery winners gone bust. One New Jersey woman even won two lotteries -- for a total of $5.4 million -- but blew threw it all on spending, gifts and gambling. Uncommon? Not really.
Two out of three lose or spend all their winnings within five years, said Stephen Goldbart, co-director of the Money, Meaning and Choices Institute in San Francisco.
Most lottery winners spend all their winnings because they don't make careful plans to save or invest it, he notes.
"The average American lives paycheck to paycheck," he adds. "So when they come into sudden wealth, they have to learn the financial ropes" of planning.
But lottery winners aren't the only ones who botch sudden wealth. Lately, Goldbart and his colleague, Joan Invursky DiFuria, have been counseling dot.com whiz kids who made millions -- then lost it all -- when the tech bubble burst. While many spent their newfound fortune on lavish parties, fancy cars, homes and other toys, most of their money was paper wealth invested in just one or a handful of dot.com stock.
"They didn't protect themselves against change and they didn't diversify," said DiFuria. "It was unexpected that they'd make so much so quickly, and it was unexpected that they'd lose so much so quickly."
For many, the sudden loss packed a bitter punch -- creating pressure to earn new fortunes. Others are stuck in the soul-searching phase, wondering where to now and how to apply their skills toward a meaningful line of work. Still, others adjusted surprisingly well, said DiFuria.
She remembers the day she met with one woman in her late 20's who had just learned that she owed more than $500,000 in taxes on stock options she exercised but never cashed in.
"She had a great attitude," DiFuria said. "She said, 'You know, the money never seemed real to me. I'm a little relieved. My friends won't be pointing at me anymore.' When she drove to work in her new car she felt great because everyone else had one. But when she returned to her middle-class neighborhood, she felt uncomfortable. She felt isolated."
Peter Grandich never felt isolated when he had millions. On the contrary, he loved what money could buy -- a spacious mansion in New Jersey, two race cars, five race horses and lots of time on the golf course.
"I was addicted to the game," said Grandich, a high school dropout who made his fortune on Wall Street. (His first break came when he was a warehouse manager and a security guard told him about a stock tip. Grandich used $7,000 of his family's wedding money and made $20,000).
Grandich eventually became a broker, but because he hated cold calling, he started a newsletter to keep himself busy at work. Again, luck was with Grandich when he moved clients out of the market before it collapsed in October 1987. His bearish call secured Grandich's reputation as the dropout/whiz kid who made good. Grandich was quoted in national papers and appeared on television -- living the good life. He calls it his "arrogant days."
"I was playing golf, making deals. I probably gave more money away in gifts and parties than I dreamed of making when I was a warehouse manager," he said.
Hubris finally got the better of him in 1997, when Grandich had his own firm and, among other things, was raising money for various mining companies. That was when the Bre-X gold mining scandal exploded. Bre-X, a small Canadian mining company, had wowed investors around the world when it claimed to have tapped the world's biggest gold mine deep in the Indonesian jungle, but the find turned out to be a massive hoax. The scandal put a chill on Grandich's business. But instead of calling it quits, he used his own money to prop up his failing deals.
"I lost 75 percent of what I had in less than a year," he recalls. "Some people get suckered by their own actions, their own greed -- that was me."
Grandich was so depressed he even considered suicide, but then worried he wouldn't be able to afford the care if he permanently injured himself. Filled with despair, he started looking for answers.
He drove to Barnes & Noble.
Grandich planned to buy a book on business strategies -- or mental health. But he ended up picking up a Bible. By his own estimates, 25 percent of the Bible's passages dealt with money.
It was a sign. And it led him to start Trinity Financial, Sports & Entertainment Co. -- a financial services business. Grandich's partner is Lee Rouson, the former New York Giants running back and a Christian leader with Sports World Ministries.
The duo now aim to help their clients -- who include players in the National Football League -- make informed, Christian-oriented financial decisions.
As it turns out, there are plenty of young football players who, like Grandich, have made then lost fortunes. In fact the NFL estimates that 78 players have been defrauded at least $42 million in the last three years. In response, the NFL Players Association this year launched a rigorous screening and certification program, with input from the Security and Exchange Commission, for financial advisers who want to register to work with the union's members, including players and coaches. (Note: anyone can call himself a financial planner, so whether you're a star athlete or a weekend warrior, choose your adviser carefully. For some guidance, see the Money lesson on hiring a financial planner.)
Meanwhile, Grandich sees a bright future for himself and his clients.
"I can manage their money but I won't throw up all sorts of big numbers," he says. "They won't have high reward, but they won't have high risk either. If they like the idea of turning $20,000 into $100,000 in five years, I'm not the right person."
Grandich pauses. "I had a tremendous home. I gave away $150,000 one year. I was like a kid in a candy store. But I don't think I had one-tenth the fun [that] I'm having today."
CNN