Payback Time

S02E58 - Robert Persichitte - How to identify scams like FTX

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We all want to make sure we don’t lose money with investing, especially with scams. The question is, how do you identify scams early, so you can run in the other direction? My next guest is a fraud specialist who has been on the show before and in this episode, we dive into the FTX scam to understand what really happened. Please note, the recording of this episode was on 12/14, while Sam Bankman-Fried was in court. My guest was careful not to classify this scam as a fraud on this episode for legal reasons but as of 12/15, it was confirmed that Bankman-Fried was charged with multiple crimes including conspiracy, fraud, money laundering, and campaign finance violations. This is a fascinating episode and I hope you enjoy it. Please welcome Robert Persichitte.


Key Timecodes

  • (01:08) - Show intro, quick background history, and his perspective on the FTX situation
  • (03:35) - Understanding what technically is a fraud, a rip-off, or just a bad deal
  • (13:35) - The problem of lack of control in FTX
  • (18:28) - Technically, how can it be proved that some situation is fraud
  • (22:24) - The danger of public figures linking their images to dubious businesses
  • (24:29) - How can we protect ourselves from such pitfalls?
  • (28:06) - Opportunity, pressure, and rationalization as the main triggers identified in those who commit fraud
  • (36:58) - Deeper into the context and how to respond to help victims of scams and fraud
  • (2:49) - The importance of an empathetic and customer-focused culture for companies to be more trustworthy
  • (44:15) - Why we need to have compassion for victims of fraud
  • (47:53) - Guest contacts


    • Payback Time Podcast

    Payback Time is a podcast for investors. The goal of this podcast is to help make investing approachable and easy to understand. We will interview beginner and experienced investors and ask them to share stories on how they got started, what challenges they faced, what mistakes they made, and what strategy works for them today. The overall objective is to provide you with a roadmap that helps you become a better investor.

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    Payback TimeBy Sean Tepper
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