Newport private wealth's guide to avoiding fraud Check out item 1 of the below post:
https://www.newportprivatewealth.ca/news/could-you-fall-victim-to-an-investment-fraud-five-ways-to-protect-yourself.html
Now lets see: NPW would certainly be the advisor to its clients’ Tuckamore holdings, and Tuckamore itself could be considered the “custodian” of the underlying assets its shareholders are supposed to benefit from. Yet the two share the same business address, used to actually be the same company, and 2 directors of Tuckamore (paid $250k/year each - which is very high), are founders of NPW and sit on its investment committee. The saying is "trust but verify." But how to verify in this case if your'e the client? And how to avoid the perception of conflict from NPW's point of view?
From Newport Private Wealth website:
"Could you fall victim to an investment fraud?
Five ways to protect yourself.
October 12, 2011
Here are five tips that can help you avoid phony investment schemes:
1. Keep the money away from the manager.
Fraudulent activity most often occurs when the roles of advisor and custodian are handled by the same firm regardless of size or reputation – as was, it appears, the case with both Madoff and Jones, for example, and this should have been a red flag. Wherever you have investment accounts you may wish to confirm the arrangements."