44 MagnumSometimes it seems like the phrase "savvy investor" is an oxymoron. After all the times people have been duped by Ponzi schemes and Nigerian scams, they still fall for similar cons. But some investors recently found a way to lose their money with a real bang.

It's the case of the .44 Magnum Leveraged Financing Program.

Some 70 investors gave fake financial firm Dresdner Financial $5.77 million based on a pitch that was much too good to be true. According to the SEC:

"[T]he Magnum Program offered guaranteed profits through a process that involved leasing and monetizing bank instruments. Although the timing and amount of the promised payouts varied, many of the contracts that the Defendants entered into with the investors stated that an investment of $44,000 would yield a return of $2 million after 10-12 banking days."

No surprise, those were empty promises. The rest of the case has a plot line that could have been lifted from the pages of a dime novel. Geoffrey H. Lunn, a defendant in the SEC's case, is accused of giving more than $1 million to "a one-eyed man who used the alias Robert Perello," the scam's putative kingpin, according to the New York Observer. Perello's cronies were reportedly handsomely rewarded, and the cyclops spent nearly a million bucks on call girls in Sin City.

This was an investment stick-up at its most brutal. And worse, it was intended to be. In its filing, the SEC notes: "According to Lunn, Perello told Lunn in the fall of 2010 that he named Dresdner's program the Magnum Program because 'when people found out they'd been ripped off, they would buy a .44 Magnum and shoot themselves in the head.' "

All we at DailyFinance can say is, when an "investment opportunity" seems too good to be believed, be extra careful before you pull the trigger.

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15 Comments

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BARRY AND KATHY

How can a person stupid enough to fall for this have a million dollars?

October 26 2012 at 12:31 PM Report abuse rate up rate down Reply
GymmyKramir

sATan wed 2 NYC has a baby.

a baby FLAG 2 be dropped in2 the NYC PENIS.

October 22 2012 at 8:17 AM Report abuse rate up rate down Reply
GymmyKramir

NASDAQ 9500

DOW 16000

October 22 2012 at 8:15 AM Report abuse rate up rate down Reply
GymmyKramir

Good Morning NYC
This iz Gymmy from the North Pole.
This is yer tyme NYC.
Up in the sky
It’s a bird
It’s a plane
But It’s NOT Superman
It’s a FLAG
A FLAG cuming right in 2 the HUGE HOLE in U NYC jujubeeeeeeeeeeee & MM PENIS.
Don’t worry. It will GO IN EASY bcause ALL uv have already BEEN smeared (THE SEC IS GONE)
With plenty uv
ANELL MUSTARD

October 22 2012 at 8:14 AM Report abuse rate up rate down Reply
pplylersr

just raise the taxes on the bullets & they couldnt afford to shoot them selves .suicide problem solved

October 21 2012 at 6:42 PM Report abuse rate up rate down Reply
harlson

OMG George .. I'm amazed you are still standing after drinking that much of NOBAMA koolaid..

to others.. you can't change stupid but ya can VOTE it out ..

October 21 2012 at 12:21 PM Report abuse -1 rate up rate down Reply
neeke25

no way that happened.

October 20 2012 at 8:43 PM Report abuse rate up rate down Reply
Big Daddy

Anyone who thinks $44,000 would yield $2,000,000 in 10 days and not because they sold a kilo deserved to loose ALL their money. Don't be greedy and stupid.

October 20 2012 at 2:53 PM Report abuse +4 rate up rate down Reply
Hello George

I ask everyone who has a real brain, do you trust a person that insulted 47%, then binders of women, and if you have a pre exhisting condition with obamacare you have no worries, and what about getting the real things that matter to all women, and then if you even expect to retire, at the moment you have no problem, and with medicare the same no problem! So do you want to go to do one of these things and find yourself with an empty bag ? If you love LIARS and want your government to block everything the TEABAGGERS, you really trust them to railroad your life into a big FAT 0. What about equal pay, you know the POTUS is on all womens side all the time, not a conveinance, but in every case he supports ALL WOMEN, he passed the L L law, the Pres supports women on every issue! I trust our Pres with my life, but the other choice scares my life out of my mind, I don't trust this other person, his agenda is let me in to get all my rich guys a huge tax break, I would be so ashamed to have this war hungry person behind that desk! With the POTUS we dont have the worry if a woman is raped and she needs an abortation, that she will not have to jump through hoops and have to be made to feel that this was her problem, and be forced to carry this fetus in every case. Then have to hear about these binders full of women, seems like he is a male PIG, his pockets full of money is sickening, he does not support our kids getting into college, sure his answer go borrow the money from your parents, does he believe all parents have all his money, hes sick! He has not once showed his tax returns as of 10/20/2012 that was what we have asked for! His answer is always this today, and changed tomorrow, this is not what I am looking for to run this country, NOT ON MY WATCHED, NEVER EVER !!!

October 20 2012 at 8:28 AM Report abuse -5 rate up rate down Reply
1 reply to Hello George's comment
smaselli12

You are full of yourself and some other fecal matter as well. Who is the liar????

October 20 2012 at 12:17 PM Report abuse rate up rate down Reply
gp341

Too good to be true? Just trust me.. No, I don't think so Mr. Romney.

October 19 2012 at 9:05 PM Report abuse +1 rate up rate down Reply