Get Rich Quick

Over the weekend I watched "American Greed" for the first time. It is a show that runs on CNBC. The show tells of cases of scams and frauds that schemers create to make money fast. The episode I saw consisted of two scams. The first took place in the early 2000s in Colorado. The second was also placed in the early 2000s, however this was mostly in Hawaii and Washington.

Norman Schmidt first began Colorado Holdings LLC. in Denver. He claimed to investors that he had access to an elite group where he could make them millions. He promised a 10% return every month of whatever sum they initially paid him. He said that billionaires like George Bush Sr had made his fortune there. This group does not exist however. In the end it was 56 million dollar Ponzi scheme. Norman was characterized as moving from one "get-rich-quick" scheme to the next. But isn't that what we all hope for, some way to make it big with as little cost as possible. Isn't that the American dream? As Chuck Reinhardt, Chief Investigator of Colorado's Division of Securities, said "[the investment] may sound odd, but you really want to believe."

James Lull of Hawaii started out as a mortgage broker. He made is quick money by promising high returns to investors who create bridge deals. If a person with a low credit score were to step into his office and the loan was relatively simple (like a credit card loan) he used the investors' money to make the loan. The investors then received 12% interest on what they invested. Soon it spiraled out of control. Lull had more investors than he had people to loan to, so he used the money to finance his own rare collectables. He purchased rare coins and arrowheads. He loved opals and often bought opal and ivory encrusted billiard sticks. He also wanted more. 


The get-rich-quick desire is most prevalent in those who create the schemes and scams, but the investors and victims share a little of the same lust. To make money without having to work a minute, that seems to be the goal. What you have is never enough, you just want a little more. The original $25,000 Claire Mortimer invested in Lull's scheme wasn't enough, she wanted more.