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Lottery winner sues advisors for poor policies

Topic closed. 70 replies. Last post 3 years ago by rdgrnr.

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Teddi's avatar - Lottery-008.jpg

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May 13, 2013
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Posted: September 28, 2013, 12:52 pm - IP Logged

I sincerely Hope you win , so that the curse holds true as you state. The post certainly affirms your on your way to that status.

Keep that way of thinking.

If you are stupid enough to not read contracts, not look into the advice you are given and the people giving them and then want to blame others for your own stupidity, look elsewhere for sympathy. You aren't getting any from me. And any moron who thinks he's deserving of a pat on the back after losing $97 million in four years is a DUMB_ _ _. 

You want to throw him a benefit. Be my guest. Sounds like the two of you would end up in the same pity party. Pity party of 2.

He had $70 million dollars and thought it made sense to go into debt so he could scheme his way into even more money. This was stupidity mixed in with a whole lotta greed and you want to get all pissy because I refuse to feel sorry for someone like that. That's like saying I should feel sorry for Jack Whitakker getting robbed when he left thousands of dollars in cash in his unlocked truck in front of a strip club. Twice. NOT HAPPENING. You do something stupid, live with the consequences. I'll save my sympathy for non-morons.

    Pita Maha's avatar - 940d8157 d1fb-4f70-a715-6ad04d915489.jpg
    SW Florida
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    Posted: September 28, 2013, 12:53 pm - IP Logged

    True Pita- but ttech10 posted this above, and it got me thinking- How did Ogawa fall for his " Financial Advisors" spin yet was able to con his friends into letting him walk away with $70 million?

    It appears his dumb in some things but somewhat " bright" in others.

    lol! Yeah, sneaky smart when it comes to ripping off his friends but dumb when it comes to knowing whether financial advice is good or not.  Now that I'm thinking it through more, sounds like greed is his overwhelming personality trait. It wasn't enough for him to con the full $70 million out of the win, but he wanted even more. The "advisors" could probably see that in him and knew they had an easy mark. Dazzle him with the promise of millions more and his brain would quit working.

      Teddi's avatar - Lottery-008.jpg

      United States
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      May 13, 2013
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      Posted: September 28, 2013, 1:03 pm - IP Logged

      I don't understand some of these big lottery winners who risk the majority of their millions dabbling in investments.

      That is what greed will get you! Why bother to invest in something you know  nothing about when you have $70M in the bank?  I would never risk my entire net or pull any lines of credit if I had his millions, it would sit somewhere safe in the bank until I researched and felt confident and still it would only be put into low risk investments. Not some shady recommendaton by some SLICK talking sales person.

      And what is the point of investing in self life insurance? lol he can't cash out if he's dead, maybe his financial planners were going to put a hit on him and collect. This whole story is shady and a what not to do if you win the lottery..lol

      I don't know much about investing but I know I wouldn't be investing in life insurance on myself if I were him..lol I have always been skeptical of other people ''professionals'' telling me how to spend my money. I don't have a financial planner now so when I win I'll  just collect and kick back and live off my interest and avoid all the extras.

      There are some types of life insurance policies that can be used as investment accounts because they earn interest on part of your premium payments, and that interest rate is higher than regular checking or savings accounts. But the reason that most people don't bother to do it is because there are a lot of strings attached to it. Such as, you can only withdraw money from it after it's reached a maturation point, taxes may be attached to the withdrawals and not all the money paid into it can be recouped. Obviously some goes to admin fees and the policy itself.

      Why some people do still take out these types of policies is because it forces them to keep putting money into it and limits what can be taken out and when. So in essence, it is forcing them to save and not spend. But if you have an emergency and you need to get to those funds you may not be able to, or not without incurring hefty penalty fees.

      If you're a person that has trouble saving AND you were already going to get life insurance, it really is a great option to have. IF you're planning on having a life insurance policy any way, then this is the one to get.

      But it was never set up to be a substitute for other forms of savings accounts or CD's or trust funds. I have never in my life heard of someone using it like this. A $100 MILLION policy???? For what possible reason? Large scale greed. Plus these policies aren't hard to read. Had he read it, he would have known the drawbacks of doing this had he even bothered. I'll save my pity for someone more deserving.

        noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
        Bay Area - California
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        Posted: September 28, 2013, 1:13 pm - IP Logged

        Killer Line....

        " Dazzle him with the promise of millions more and his brain would quit working."

         

          mypiemaster's avatar - 2015021003pileofcash
          JACKPOT HUNTER

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          Posted: September 28, 2013, 4:31 pm - IP Logged

          These crooked lawyers would have eventually killed him. He should thank God, that he found out, before they finally execute the last chapter of their masterplan. I bet that the $100M, would have ended up somehow, in a trust controlled by these "masterminds". They probably walk away with a slap on the wrist.Scared

          Seek and ye shall find -Matt. 7:7 ...Ask and ye shall receive -John 16:24 ...Give and it shall be given unto you -Luke 6:38 ...Be careful what you ask for!!! -Mypiemaster 1:1

          Having Money Solves Problems That Not Having Money Creates Yes Nod ****John Carlton****

            savagegoose's avatar - ProfilePho
            adelaide sa
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            Posted: September 28, 2013, 7:14 pm - IP Logged

            Todd is constantly dredging for stories to make LP interesting and worth coming to to get your lottery news.  Hopefully someday one of these stories will be about a LP member being the big winner.

            lol

            i hope that story isnt about me.

            2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

            keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

              savagegoose's avatar - ProfilePho
              adelaide sa
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              Posted: September 28, 2013, 7:18 pm - IP Logged

              was just thinking,  70 mill would be $1 mill a year for 70 years. even if you kept it all under your mattress!

              2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

              keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

                Erzulieredeyes's avatar - spider miss.png
                Painesville, Ohio
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                October 12, 2011
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                Posted: September 28, 2013, 10:24 pm - IP Logged

                was just thinking,  70 mill would be $1 mill a year for 70 years. even if you kept it all under your mattress!

                lol My thoughts exactly! This is why I don't understand why this guy would think he needs a $600 million life insurance policy? or any life insurance policy for that matter. lol

                I could live like very lavish on $70 million without ever collecting another dime or investing or purchasing life insurance and still have plenty of money left over when I expire...d*mn fools.

                  Avatar
                  NY
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                  Posted: September 29, 2013, 12:48 am - IP Logged

                  I take back everything I have ever said about the lottery not being cursed.

                  There is obviously a curse. Seems only dumba$$es win. 

                  If you can take home $70 million AFTER taxes and end up tens of millions in debt 4 years later, you are a dumb_ _ _. There is no other way to put it. 

                  And these 'advisors' didn't even have to do any fancy accounting tricks or speak in legalese or use Wall Street terms that perhaps the regular Joe wouldn't understand. Didn't even have to forge his signature and pay off a notary. All they did was tell him to buy life insurance he didn't need and to buy properties he couldn't afford. And he did it.

                  Having an advisor does not preclude you from having common sense. No Pity!Here's the world's smallest violin. Another idiot winner flat broke.

                  "If you can take home $70 million AFTER taxes and end up tens of millions in debt 4 years later, you are a dumb_ _ _."

                  If you think that having $27 million in debt means this guy is broke you're the dumb_ _ _. There's nothing in the story about how much of his principal he spent, but since he borrowed the money to buy the real estate and he doesn't seem to be complaining about anything else except for $2 milion he spent for life insurance it's a fairly safe bet that he has the majority of the principal and recently acquired assets that may or may not be worth more than he borrowed to acquire them.  It's also worth noting that he seems to be claiming that the bad advice was to borrow money, not the advice to buy the properties. For all we know the properties he bought could be worth millions more than he paid for them. Having $27 milion in debt on properties that are worth $30 or $35 million and are appreciating isn't a bad thing. In fact, it's how people like Donald trump make a billion dollars.

                  All we really know is that a guy who is accused of defrauding his friends out of $46 million is claiming that he got bad advice and therefore deserves to be paid. It tells us absolutely nothing we can actualy rely on.

                    Avatar
                    NY
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                    Posted: September 29, 2013, 12:53 am - IP Logged

                    70 Million after Taxes, why are you invested and borrowing money?  Even in this enviorment of low intrest rates he should be able to pull close to a million a year just off interest without going into principal.  That Lottery owner needs to take responsibiltiy for his own actions he signed the contracts.

                    If I cleared $70 million my primary goal would be making sure it didn't lose value by putting it in conservative, but safe, investments. Some people would prefer to use it to make as much money as they could, and that might be this guy's plan. If that is his plan, borrowing money to buy real estate may be a very good strategy. Any increase in the value of the real estate will offset the interest on the mortgage, and it leaves most of the principal for other investments. If any of the property produces income, that also offsets the cost of borrowing the money. Somewhere down the road he could own the properties free and clear, they could be worth 2 or 3 times what he bought them for, and most of the costs may have been paid by tenants.

                    Even if he only bought property for his personal use it could still make sense to borrow most of the purchase price. If he took out a 30 year fixed rate mortgage at 4.5% he'll still be paying that same rate 10 and 20 years from now. If he currently has  the principal he didn't have to spend invested at 2.5% he may be able to move it into a better investment in a few years. Based on historical rates, there's a fair chance that for a good bit of a 30 year mortgage that principal could be earning significantly more than the 4.5% he has to pay on the mortgage. History also suggests that in 15 or 20 years the real estate will be worth far more than he paid.

                      Avatar
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                      Posted: September 29, 2013, 12:55 am - IP Logged

                      Another reason why lottery winners should remain anonymous.

                      Can you explain the tortured logic that makes you think that this guy's claims of getting bad advice from the people he hired is "another reason why lottery winners should remain anonymous"?

                        Teddi's avatar - Lottery-008.jpg

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                        Posted: September 29, 2013, 8:00 am - IP Logged

                        "If you can take home $70 million AFTER taxes and end up tens of millions in debt 4 years later, you are a dumb_ _ _."

                        If you think that having $27 million in debt means this guy is broke you're the dumb_ _ _. There's nothing in the story about how much of his principal he spent, but since he borrowed the money to buy the real estate and he doesn't seem to be complaining about anything else except for $2 milion he spent for life insurance it's a fairly safe bet that he has the majority of the principal and recently acquired assets that may or may not be worth more than he borrowed to acquire them.  It's also worth noting that he seems to be claiming that the bad advice was to borrow money, not the advice to buy the properties. For all we know the properties he bought could be worth millions more than he paid for them. Having $27 milion in debt on properties that are worth $30 or $35 million and are appreciating isn't a bad thing. In fact, it's how people like Donald trump make a billion dollars.

                        All we really know is that a guy who is accused of defrauding his friends out of $46 million is claiming that he got bad advice and therefore deserves to be paid. It tells us absolutely nothing we can actualy rely on.

                        Hahahahahaha. Yeah. That makes soooooo much sense. 

                        Let's see what you're trying to claim here: Property he bought but him in debt. The property he bought might have appreciated in value but he's still suing them for urging him to take out the loan. Uh huh. 

                        HAD he made money on the property, he could pay off the loan and he would have absolutely no reason to be suing for bad advice. Debt would be gone and he'd have a profit. No debt PLUS additional return on investment, WOW. Such horrible advice. How dare they make him money. Puh-lease. Even a dumb_ _ _ wouldn't need to sue in that event. 

                        No one sues for bad financial advice if they made money from that advice. DUH. 

                        If he made money from that advice he wouldn't be in debt. DUH.

                          OldSchoolPa's avatar - Lottery-057.jpg
                          Gurnee, Illinois
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                          Posted: September 29, 2013, 8:50 am - IP Logged

                          If you must go to a financial advisor, only go to a flat fee-based advisor/company, not one that sells products/policies or where they make a commission off of the sale...

                          The fee based financial advisors are really trying their very best to disparage those that are compensated a percentage of assets under management and commission.  Everyone actually needs services of a financial planner or advisor, but how many middle income families can pony up $1,000 or $2,000 for a financial plan? When I win the big jackpot that I fully know the odds are I may never win, I will continue to invest with same brokerage firm I have done so for past decade. Also, for those who are as gullible as this gentleman, you should know that LIFE INSURANCE is NEVER an investment! If you want guaranteed rate of return or safety net from market gyrations, the ideal product for you may be an ANNUITY. Life insurance is designed to provide income for your surviving beneficiaries AFTER your death. Annuities are designed to provide income for you (and another annuitant as well as beneficiaries, if so designed) while you are living.

                          Get MONEY!!! Winning a JACKPOT lottery is all the HOPE and CHANGE I desire!!!  NOW give me MONEY!US Flag

                          The guy who won the presidency in 2008 really won the lottery...he is now millions richer, travels in first class style, and even has a staff that would be the envy of the richest Powerball winner (she has a staff of 2). Every night he goes to sleep, he probably plays the close of Dave Chappelle's Show: I'm rich beyatch!

                            OldSchoolPa's avatar - Lottery-057.jpg
                            Gurnee, Illinois
                            United States
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                            Posted: September 29, 2013, 9:01 am - IP Logged

                            There are some types of life insurance policies that can be used as investment accounts because they earn interest on part of your premium payments, and that interest rate is higher than regular checking or savings accounts. But the reason that most people don't bother to do it is because there are a lot of strings attached to it. Such as, you can only withdraw money from it after it's reached a maturation point, taxes may be attached to the withdrawals and not all the money paid into it can be recouped. Obviously some goes to admin fees and the policy itself.

                            Why some people do still take out these types of policies is because it forces them to keep putting money into it and limits what can be taken out and when. So in essence, it is forcing them to save and not spend. But if you have an emergency and you need to get to those funds you may not be able to, or not without incurring hefty penalty fees.

                            If you're a person that has trouble saving AND you were already going to get life insurance, it really is a great option to have. IF you're planning on having a life insurance policy any way, then this is the one to get.

                            But it was never set up to be a substitute for other forms of savings accounts or CD's or trust funds. I have never in my life heard of someone using it like this. A $100 MILLION policy???? For what possible reason? Large scale greed. Plus these policies aren't hard to read. Had he read it, he would have known the drawbacks of doing this had he even bothered. I'll save my pity for someone more deserving.

                            LIFE INSURANCE is NEVER an INVESTMENT. One can use it for estate tax planning purposes as well as to provide income for surviving beneficiaries AFTER ones death. An appropriate INVESTMENT for people seeking guaranteed rate of return or safety net from market declines are either a FIXED INDEX ANNUITY or VARIABLE ANNUITY. 

                            Only a life insurance agent more interested in his payday instead of the best interest of the client would recommend cash value life durance as an investment.

                            The only person that life insurance could have been an investment had it existed then was JESUS CHRIST, since He died and rose again! Now if your name happens to be Jesus Christo Rivera/Gonzalez/ Martinez/Garcia/Guetierrez, please do not think for a moment that life insurance would be a suitable investment for you.

                            Get MONEY!!! Winning a JACKPOT lottery is all the HOPE and CHANGE I desire!!!  NOW give me MONEY!US Flag

                            The guy who won the presidency in 2008 really won the lottery...he is now millions richer, travels in first class style, and even has a staff that would be the envy of the richest Powerball winner (she has a staff of 2). Every night he goes to sleep, he probably plays the close of Dave Chappelle's Show: I'm rich beyatch!

                              Nikkicute's avatar - nnjx1k
                              Wisconsin
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                              Posted: September 30, 2013, 1:36 am - IP Logged

                              A young, unmarried grocery store worker, with no children, won half of a $336 million Mega Millions jackpot and did just that: bought a $100 million life insurance policy. 

                              When you intend to do something that you have no know-how and are too lazy to learn then tragedy is what you get. Personally I would have bought municipal bonds from a thriving state such as Florida. They are tax free too. 

                               

                               9/27/2013.

                               

                              AAA RATED

                               

                              ISSUEMaturity 
                              Range
                              TodayLast 
                              Week
                              National10 Year2.702.90
                              National20 Year4.004.15
                              National30 Year4.454.60
                              Florida30 Year4.404.50

                              When you win the lottery, you have a lot of work to do before you can rest easy.

                              Dude had it made!! No wife, no children (not saying a wife and children/a family are bad), it was

                              just him, he didn't have to worry about a divorce or support of any kind and he STILL blew it!!

                               

                              He did not need another $50 million!!

                              ...the secret to Luck is never to trust it...

                              2012 wins:$20 loss:$200  2013 wins:$100 loss:$270  2014 wins:$360 loss:$273 

                              2015 wins:$0 loss:$53  2016 Jan $0/$15.00 Feb $0/$2.50 Mar $0/$4.00 April $0/$0 May $0/$0

                              June $0/$0 July $0/$0 Aug $0/$0 Sep $0/$0 Oct $0/$0