Be careful when you invest money

Keith Lars Monia, 55, will spend decades in prison, and possibly the rest of his life.

He pleaded guilty on Tuesday to nine counts of financial exploitation of the elderly and stealing by deceit.

All told, Monia pleaded guilty to stealing more than a half-million dollars from elderly people who signed over checks to him and expected him to invest the money as he said he was going to do.

Alas, he did not. After losing his license as an insurance producer, he took money from people, used it for his own purposes, and tried to invest much of it with George Joseph, now a convicted murderer who is accused by at least 12 people of running a Ponzi scheme. He, too, is accused of stealing thousands of dollars from people and spending it on himself. Faced with the weight and embarrassment of his financial situation, Joseph shot and killed his wife and son, then failed in an attempt to kill himself.

We don't have a crystal clear explanation whether Monia knew he was investing into a Ponzi scheme with Joseph or whether he was unsuspecting of Joseph's schemes. Any way you look at it, Monia deprived seniors of their savings.

"You kept that money for yourself?" asked Judge Ben Lewis. Monia affirmed the question.

Words, at least not those fit for a family newspaper, can deftly describe a man who would do this to vulnerable, older people. At least one of the people he ripped off was battling cancer.

We hope the exposure and justice of this crime will at least offer a deterrent to future crimes.

The case serves as an acute example of why people should be very careful when they invest their money.

There are countless scams and thieves looking for opportunities to take your money.

Investor.gov, a website developed by the U.S. Securities and Exchange, offers several tips to consider before trusting others with your investment. The website's tips include:

* Ask questions. Fraudsters are counting on you not to investigate before you invest. Fend them off by doing your own digging. It's not enough to ask for more information or for references -- fraudsters have no incentive to set you straight. Take the time to do your own independent research. For more about information see Ask Questions.

* Research before you invest. Unsolicited emails, message board postings, and company news releases should never be used as the sole basis for your investment decisions. Understand a company's business and its products or services before investing. Look for the company's financial statements on the SEC's EDGAR filing system. You can also check out many investments by searching EDGAR.

* Know the salesperson. Spend some time checking out the person touting the investment before you invest -- even if you already know the person socially. Always find out whether the securities salespeople who contact you are licensed to sell securities in your state and whether they or their firms have had run-ins with regulators or other investors.

* If it sounds too good to be true, it is. Watch for "phantom riches." Compare promised yields with current returns on well-known stock indexes. Any investment opportunity that claims you'll receive substantially more could be highly risky -- and that means you might lose money. Be careful of claims that an investment will make "incredible gains," is a "breakout stock pick" or has "huge upside and almost no risk!" Claims like these are hallmarks of extreme risk or outright fraud.

* Beware the "halo" effect. Investors can be blinded by a "halo" effect when a con artist comes across as likable or trustworthy. Credibility can be faked. Check out actual qualifications.

* Pressure to send money RIGHT NOW. Scam artists often tell their victims that this is a once-in-a-lifetime offer and it will be gone tomorrow. But resist the pressure to invest quickly and take the time you need to investigate before sending money.

* Reciprocity. Fraudsters often try to lure investors through free investment seminars, figuring if they do a small favor for you, such as supplying a free lunch, you will do a big favor for them and invest in their product. There is never a reason to make a quick decision on an investment.

Please be careful with your money. Who knows when the next Keith Monia will be lurking around the corner.