The interesting thing about this is that legitimate money managers act like this too. These are completely binary propositions: either they make you money or th

The interesting thing about this is that legitimate money managers act like this too. These are completely binary propositions: either they make you money or they don't. No slew of licenses and regulatory ID number checks will help this. > He arranged for tours of properties in Geneva and Monaco and once insisted Diana travel on what he said was his company’s private jet. (Hottinger had no plane; it was chartered especially for the occasion, for about $40,000.) “He got us by being relentlessly helpful,” Diana, 59, says. “We’re Francophiles,” adds Andrew, 74. “We both speak French, we love French food—so maybe we were vulnerable. We were impressed.” His "exploitation" of cross border regulators to evade a harsher conviction and restitution isn't really that notable, in my opinion (albeit clever if he was avoiding money laundering charges as the article suggests). Many legitimate funds have to operate with the same flexibility and exemptions for other reasons, and ultimately you either create value for your investors or you don't. The real deterrent is that people are more concerned about their kneecaps and families, especially from any gangsters or politicians they have in the fund. If that deterrent is gone then you'll see more of this.