I am privileged to speak to a wide variety of audiences on my favorite topic: ethical behavior. My audience members include business people, medical professionals, former coaches and athletes, government employees and even educators. In casual, one-on-one conversations with people, the topic of money or financial matters will sometimes pop-up.

Sometimes I hear a conversation such as this: “Chuck, I like to follow the advice of ‘so-and-so.’” I nod, and ask them “Why?”

“Well,” they will say,” she (or he) is on television and a lot of people listen to them.”

“Oh, I see.”

And What Else?

We have, unfortunately, become a society that has elevated many self-proclaimed financial experts to media stages because we like the way they talk, or we like their “philosophy,” or (gasp) because they like the way he (or she) looks. But do we ever wonder who they are ethically?

Let’s talk for a bit about Brett Bogus and yes, that is his real name.

In an article written by station KPRC Investigative Reporter and News Anchor Joel Eisenbaum,  (October 9, 2013), entitled: “Former Houston radio financial advisor charged with felony” we learn the story of Brett Bogus, a man who, according to the article:

“…offered financial advice to his listeners… (was) charged with a felony. The

Kingwood (Texas) resident, Brett Bogus, 54, has been charged with Misapplication of Fiduciary Property. In court paperwork, Bogus is accused of shorting a client approximately $75,000 in a gold transaction…For years; Bogus touted the benefits of trading paper money for gold on his weekday radio show.”

            This was apparently not the advisor’s first brush with the law. According to the article, he has also had legal trouble in North Carolina and California. He apparently short-changed investors there as well. He owes investors money in three states.

He has also claimed to be a high powered consultant to government agencies. None of it is true.

According to the article:

“Humble (Texas) police said they are investigating the possibility of adding criminal charges related to other victims.”

What was the platform Brett Bogus used to get clients to invest with him? He had a radio show called “The Meltdown.” He paid a local radio station for his air time.

In other words, people trusted him because he seemed personable and was on the radio. There was no thought given as to his track record and no thought as to how he presented himself ethically. The advice given on the radio show was not neutral; it was intended to bring customers into Bogus’ retail establishment, called “The Gold Exchange,” enabling Bogus to take advantage of clients – especially his elderly clients.

What We Can Take from This

The easy answer to give is: “Don’t trust anyone.” We know that type of advice can lead us to cynicism and treating everyone in life with a skeptical eye. That is just not fair. Maybe the better answer is that we should be very careful of who we are listening to and what that person has to gain by dispensing that advice.

For example the radio station Bogus used made him pay for his air time. The show was an advertisement. The logical question should have been, “Why is he advertising? What is he advertising?”

There is a very popular financial “expert” whose credibility has lately been brought under scrutiny because she dispenses the same financial advice for virtually any situation. However, that aside, her show attracts millions of dollars in advertising dollars and she is a spokesperson for several products. Can you imagine her advising against a company she represents? Be careful of the person you follow.

The next thing I would advise is to know what you are investing in, and are there opposing points of view? Listen carefully to all opinions and never follow “hunches” or people who promise you the moon and the stars.

Above all else, be aware of people who do not live their lives ethically. I am all for people being given second chances. However, moving to another state and opening the same fraudulent business under a different name is not the same thing as taking responsibility for unethical behavior. If a person is unethical in his or her business dealings and has not made amends for that behavior, the person is still unethical.

This person had the opportunity to take advantage of people he knew were “star-struck,” and he took every advantage he could take. He told people things he knew they wanted to hear. A lot of money from those star-struck investors will probably be lost forever.

At the time of this writing Mr. Bogus has “made bail” and is back in business at least for a little while. I am not surprised. The media offers a lot of fantasy and sometimes the grounding effects of ethics aren’t very flashy.

Remember that “flash” only lasts for seconds.