This month I lost $60,000 I sort of had and $1,000,000 I would have had.
My uncle has been investing in this company called transcontinental that was giving him a huge interest rate (20% at first which was eventually lowered to 10%) since the beginning in the mid 80's. He didn't start with much, but it built to about $2,500,000 in the account, which is pretty much all of his money. He's also been gifting me and my brother $10k a year for the past 5 years as long as we don't take it out.
Transcontinental was run by Lou Pearlman (
wikipedia), the guy who was responsible for starting the backstreet boys and nsync up along with other moderately successful singing groups. He also had a bunch of other supposedly huge companies and business ventures.
I was never that involved, but I met him a few times on special occasions. One time he flew us in a private jet to a casino in the bahamas (I was around 15 at the time) just for a day to hang out. Other times we'd meet with him at expensive steakhouses, where he'd treat everyone. Everything he did screamed success.
Well just recently it was discovered that transcontinental was just a huge ponzi scheme and the $500,000,000+ of over 1400 investors money he had (including ours) is all gone (don't know where, but 99% chance we'll never see it). All of his businesses were scams in one way or another and he used the success he had with the boy band groups just to lure more people people in to give him their savings. He's currently hiding in some other country or something.
What really sucks is that I knew it was some how a scam (didn't know it was this crazy though). Who gives a guaranteed 10% interest? Every time I talked to my uncle I told him to take at least half out and diversify, but he refused to take any money out or let me take anything out. He pretty much stopped talking to my mom, because she'd tell him the same thing.
And the worst part is that after this whole thing happened, my dad told me that my uncle was going to leave me my brother and my parents each 1/3rd of himself, which would have been about $1,000,000 each. Whoops.