Let’s talk about investment fraud, or as I like to call it: the fine art of legally-sounding theft.
You’d think by now we’d all spot a scam from a mile away. But then along comes a guy like Justin Costello—smooth, polished, promising the world—and suddenly people are cashing out retirement accounts to chase the dream.
He wasn’t a billionaire. He just played one while stealing your grandma’s retirement.
Here’s what happened
Justin Costello sold a fantasy: that he was a self-made billionaire managing a $1 billion hedge fund, secretly connected to a network of wealthy investors.
He even claimed to be helping cannabis companies go public.
Reality check? He was just a con man playing dress-up with other people’s money.
And now? He’s been sentenced to over 15 years in prison for securities fraud, wire fraud, and tax evasion. (Source: U.S. Department of Justice)
The Playbook of a High-End Scam
Let’s break it down. These were his greatest hits:
- Lied about his credentials: Claimed he had an MBA and served in the military. (Nope and nope.)
- Invented a fake empire: Told investors he had access to billionaires. (He didn’t.)
- Stole investor money: Used at least $30 million from 29 victims to fund his lifestyle—think private jets, luxury travel, and a 20-foot yacht.
- Faked stock promotions: Ran a penny stock pump-and-dump scheme using Twitter to hype worthless investments.
- Lied to the IRS: Failed to file personal tax returns while living large on fraudulently obtained cash.
And the part that makes your stomach turn? Many of his victims were elderly or disabled—people who trusted him with everything they had.
This Isn’t Just One Greedy Dude
Nope. This is a symptom of a much bigger problem:
People are financially vulnerable. And predators know it.
Think about it:
- Economic anxiety is sky-high.
- People are desperate to grow their money faster.
- Scammers are getting slicker—throw in some crypto jargon, a “fund,” and a few fake testimonials, and suddenly it all feels legit.
But here’s the twist—this guy didn’t need to be slick. He just needed people to believe.
That’s the real danger: we’re trained to trust confidence over credentials. Smooth talk and a fake LinkedIn page are now all it takes to scam millions.
Investment scams cost Americans $4.6 billion in 2023 alone.
(Source: Federal Trade Commission)
Could You Spot a Scam?
💡 Which of these are common red flags of fraud?
- ✅ Flashy wealth
- ✅ Fake urgency
- ✅ No license or oversight
- ✅ “Friends” who got rich fast
If you hesitated… welcome to the club. That’s how the best scams work.
Who Let This Happen?
And where were the regulators? While Costello faked hedge funds and dodged taxes, the watchdogs were asleep.
Turns out, if you look rich enough, no one asks questions—until it’s too late.
How to Protect Yourself (and Your Friends) from the Next Justin Costello
You know I’m not here to judge—just to help you dodge the landmines. So here’s what you can do:
1. Never trust the story. Trust the paperwork.
If someone claims to manage millions, ask to see audited financials, SEC registrations, or anything real.
2. Don’t confuse wealth with wisdom.
Flashy cars, watches, or followers don’t mean they know what they’re doing. It just means they want you to think they do.
3. Always verify—never assume.
Use sites like FINRA BrokerCheck or this consumer guide before giving money to anyone.
4. Know that fear and FOMO are tools.
Scammers always create urgency. “Act now.” “Limited time.” “Everyone’s doing it.” These are emotional red flags.
What This Teaches Us About Debt and Desperation
Here’s what really breaks my heart:
Some of the people scammed by Costello were probably already drowning in debt.
And like so many others, they saw investing as the lifeline—the shortcut to freedom.
But shortcuts don’t exist when the people handing you the map are the ones digging the hole.
If you’re feeling desperate, I get it. I’ve been there.
But before you bet the house, your savings, or your sanity on someone’s “once-in-a-lifetime opportunity,” stop. Talk to someone you trust. Ask questions. Double-check.
Or better yet, talk to someone like Damon Day—a guy who doesn’t sell dreams, just real help.
FAQ – What People Also Ask
What is securities fraud?
It’s when someone lies or deceives investors to trick them into buying or selling investments.
How do I report investment fraud?
You can report it to the SEC at sec.gov/tcr or your state’s securities regulator.
Can people get their money back after a scam?
Sometimes—but not always. Court restitution may help, but most victims only recover a portion (if anything).
How do I know if someone is a licensed investment advisor?
Check their background at Investor.gov, or use FINRA’s BrokerCheck.
🛡️ Want to Avoid Getting Scammed?
Before you trust any company with your money—especially if it sounds too good to be true—take 3 minutes to do your homework.
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
📌 I put together a simple, no-fluff guide to help you spot shady companies before they burn you:
👉 How to Check Out a Business or Company to Avoid Getting Scammed or Ripped Off
Don’t skip this. It could save you thousands—or everything.
Final Word: You’re Not Dumb. Scammers Are Just That Good.
If you’ve ever fallen for a smooth-talking fraudster, don’t beat yourself up.
These people are professionals. Their full-time job is manipulating trust. And if you’ve lost money, you’re not alone. But you can bounce back. You can learn. You can protect yourself going forward.
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If someone you love is chasing ‘the next big thing’—send them this first. You might save them everything.
Drop a comment below—have you ever struggled with this? Let’s talk about it. And before you go, boop that like button, subscribe, and check out GetOutOfDebt.org for free resources.
