David Rosenberg Exposes Investment Scam: Thousands Duped by Fraudulent Ads
In a shocking revelation, esteemed economist David Rosenberg has found himself unwittingly embroiled in a massive online investment scam involving a fraudulent scheme that has bilked victims out of hundreds of thousands of dollars. With ads plastered on platforms like Facebook and Instagram, the con artists have successfully mimicked Rosenberg’s identity to lure unsuspecting investors.
The Scam Unfolds: A Professional’s Nightmare
Rosenberg, who is the founder of Rosenberg Research, reported that since March, deceptive ads featuring his name have been peddling a fake investment program. Despite his efforts to clarify the situation, he’s heard chilling accounts from numerous individuals who have fallen victim to the scheme—total losses potentially exceeding $1 million.
“We’ve been flooded with inquiries from people trying to discern if this is legitimate,” Rosenberg stated, emphasizing the severity of the issue.
The alarm bells first rang for Rosenberg in April when a close friend reached out, inquiring about a supposed new investment opportunity called the "Wolfpack program." His friend asked, “Is this for real, and can small investors like us participate?” This moment marked the inception of Rosenberg’s campaign to warn others.
Understanding the Mechanics of the Fraud
Rosenberg Research is known for its ETF-based model portfolios that clients can follow. However, the firm has never offered any investment programs under the guise of the "Wolfpack program." The subsequent weeks saw an avalanche of messages from acquaintances and strangers alike, all ensnared in what could be described as a “pump and dump” or “pig butchering” scheme, where trust is gradually built with the intent to exploit.
The Emotional Toll of Being Misled
Consultant Vanessa Iafolla explained, “In these scams, the victims are gradually drawn in through social media, coaxed into investing larger amounts based on misrepresentations.” Syed Hasan was one of those unfortunate victims. After encountering a Facebook ad that promised returns between 30% and 70%, he was soon lured into a WhatsApp group that claimed to utilize the Rosenberg Investment Strategy.
"You start feeling greedy," Hasan reflected, recalling how an early stock suggestion skyrocketed, amplifying his trust in the scammers.
However, confidence quickly turned to despair as subsequent investments plummeted in value, leading Hasan to lose $16,000. A female investor shared an even more harrowing tale, revealing she lost $500,000 after just one week of engaging with the fraudulent program.
The Call for Action
The Rosenberg family has made attempts to alert authorities, including local police and the Canadian Anti-Fraud Centre, but met with a frustrating lack of responsiveness. "It was like a shrug," Rosenberg lamented. Even as victims shared their experiences with him, very few were willing to file formal complaints.
Detective David Coffey from the Toronto Police Financial Crimes Unit urged potential victims to come forward. He stated, "Without reports from victims, we cannot launch investigations," emphasizing that many scammers operate from abroad, complicating efforts to bring them to justice.
A Growing Epidemic
Investment fraud has become increasingly prevalent, contributing to reported losses of about $311 million in Canada in 2024 alone, according to the Canadian Anti-Fraud Centre. Alarmingly, the agency estimates that 90-95% of fraud might go unreported.
In the words of Detective Coffey, “Investment fraud is one of the most profitable types of fraud, generating billions annually.”
Conclusion: Stay Vigilant
As Rosenberg and his family strive to raise awareness about this alarming trend, the case serves as a stark reminder of the importance of vigilance in the digital age. Individuals must be critical of investment opportunities that appear too good to be true, especially those advertised through social media.
For those feeling uncertain about an investment opportunity, it is crucial to conduct thorough research and consult verified financial advisors. As the landscape of digital finance continues to evolve, safeguarding your hard-earned money has never been more essential.
For more insights into safeguarding your investments, check out the Canadian Anti-Fraud Centre and stay informed about known scams.
