It happens way too often. Someone needs money and needs it fast. Along comes an offer or an ad or a scheme — and with its promises of easy money it sweeps away the usual caution ultimately fleecing innocent investors of all their savings.
But according to Meir Shterenberg of JOIN Israel’s Pitronot Advocacy program to rescue Israelis from financial and legal quagmires forewarned is forearmed.
In this new monthly column he’ll help you distinguish the scam from the real deal and keep your money safe.
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The Players:
Name: Yisrael and Esti Efrati
Age: Early 30s
No. of Children: 2
Residence: Near Yerushalayim
The Bait:
EARN $2 000 to $5 000 PER MONTH!
Work Just 4 Hours Per Week
Minimum Investment: $18 000
Call for Interview
The Background:
You might have seen an ad similar to the one above. A Hebrew version appeared in many Israeli chareidi newspapers. The ad was placed by a company that distributed supposedly high-end Italian coffee machines. They were looking for people including avreichim to distribute the machines throughout Israel. For a minimum investment of $18 000 the avreich received eleven coffee machines and a list of “customers” who were waiting to receive the machine. While the customer received the machine for free he had to order the coffee capsules from the avreich — which is how the avreich would make his money.
As the company explained: Let’s say you get one of the Rami Levy supermarkets to take a coffee machine. If each capsule costs you a quarter you sell it to Rami Levy for 50 cents. You can earn $25 from Rami Levy employees every day — and that’s just one coffee machine. A person can earn at least $3 500 a month if he is a hard worker. Even if he doesn’t work so hard he can easily earn $2 000 a month.
