Much of the interview concerns share scams but Phelan's comments on cold calling are well worth noting and as well as ponzi schemes that promise you guaranteed profits.
So, let's have a look at some of the typical scams, I mean one that will be, I think, at the forefront of a lot of people's minds is pyramid selling, particularly in the case of Bernard Madoff. Now, how do these pyramid schemes work? A lot of people have heard about them, but they say, "What exactly is a pyramid or a Ponzi scheme?"
Well, they can work in different ways, I'll illustrate it with one fairly typical example, which might be that I know someone who says, "You're only getting one and a half percent saving interest in your bank, that's a bit rubbish, isn't it? Why don't you give it to me and give me £1,000, and at the end of the year I'll give you £1,500" It sounds fantastic, so you give him the money, and then he goes to someone else, or I tell my friends, and they give him £1,000.'
(Go to the transcript for the rest.)