You would think that the couple in question generating that sum of money had enough grey matter to always consider external advice with a grain of salt. The article states they already lost a sizeable sum of money then blindly take the advice of an external party and invest another wad of cash.
Story here: http://www.stuff.co.nz/business/mone...ouble-disaster
The couple, working in Singapore at the time and feeling "fragile" after the finance company losses, repeatedly told McPhail they preferred conservative investments so they could return to New Zealand, buy a house and retire.
They told him in a July 2007 email: "We really are at our wits end regarding who to get sound financial advice from."
In response, McPhail said he was confident they would come to trust and value his advice. He flew to Singapore and urged them to put more money into Zeroshift after their initial $30,000 investment three years earlier.
The initial investment was on advice from their former Taupo adviser Angela Devaney - McPhail's then business partner.
The couple had also invested $1.5m in failed finance companies Bridgecorp, Capital+Merchant and St Lawrence on Devaney's advice. Devaney told them McPhail was a close friend of the Zeroshift inventor's family.
McPhail had done due diligence on Zeroshift and its contracts with "extremely high-profile" clients, she said.
Devaney declined to comment for this story.
The couple eventually put $1.3m in total into Zeroshift. After the company folded, they clawed back just $84,776 of their investment.
They told him in a July 2007 email: "We really are at our wits end regarding who to get sound financial advice from."
In response, McPhail said he was confident they would come to trust and value his advice. He flew to Singapore and urged them to put more money into Zeroshift after their initial $30,000 investment three years earlier.
The initial investment was on advice from their former Taupo adviser Angela Devaney - McPhail's then business partner.
The couple had also invested $1.5m in failed finance companies Bridgecorp, Capital+Merchant and St Lawrence on Devaney's advice. Devaney told them McPhail was a close friend of the Zeroshift inventor's family.
McPhail had done due diligence on Zeroshift and its contracts with "extremely high-profile" clients, she said.
Devaney declined to comment for this story.
The couple eventually put $1.3m in total into Zeroshift. After the company folded, they clawed back just $84,776 of their investment.
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