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Accredited Investor

Truth:

A wealthy investor, generally one having a net worth of at least $1 million or an income of at least $200,000 per year. Some limited partnerships and angel investor networks accept only accredited investors. Brought to you by InvestorWords.com

Scam:

A con-artists sometimes ask the victim if he is an accredited investor.  There are 3 reasons for this:

(1) It tells the con-artist whether or not that the victim is worth pursuing (qualifies the target). 

(2) It tells the con-artist that he must adapt his patter to accommodate the knowledge of an accredited investor.  In other words, he will be on his toes, but not discouraged.

(3) It tells the con artist he can tap into the natural pride of the person who has worked hard to become an accredited investor and use it to his criminal advantage.

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