On June 25, 2014, Jason Meisner, a writer for the Chicago Tribune, wrote an article entitled: “Former attorney, radio host pleads guilty in $2.3 million fraud.”
In the article we hear the sad tale of Jamal and Leda Khoury of Oak Park, Illinois who were convinced to invest pretty much all of the money they had in the world with their real estate attorney in order to buy commercial real estate properties in the area.
According to the article:
“But within hours of the cash landing in the supposedly secure account, their attorney, Kathleen Niew, was stealing it to invest in an ill-fated scheme, federal prosecutors say. Over the next several weeks, Niew wired millions of dollars to mining company investors in far flung places like Singapore and Australia, expecting to make a hefty commission for herself in the deal.”
The overseas investments never made money, but in a way, it doesn’t matter. The Khoury’s were cheated and though I feel terrible for them, they ultimately share in some of the blame for their problems.
Blinded by the lights
We have become a society blinded by celebrity. I see it when I give talks on sports ethics, I hear it in people’s voices whenever I interview people on my radio program, and I read it in online articles and on newsfeeds.
The Khoury’s had amassed a very nice nest egg; $2.3 million is certainly not an insignificant amount of money – and they handed it over to a real estate lawyer who was a radio host, seminar speaker and big time author. If you think about it, she had all the right credentials save for one; she was completely and totally unethical. I really don’t care that she positioned herself as a big time real estate mogul and that her call-in radio show was popular.
As the case was mounted against her, others layers of her background began to peel away like an over-ripe onion.
The article states:
“Records show Niew, who began practicing law in 1981, had a history of disciplinary proceedings that dated back to 1989. In 2001, justices suspended her license for nine months based on allegations she forged clients’ signatures, record show. In 1989 the state disciplined her for falsely stating that she was single when she married again.”
There have been other accusations against this self-styled big-shot and apparently, in addition to Illinois leveling charges, it appears as though South Carolina is now weighing in that Niew defrauded investors in that state as well.
People have been blinded by her; by her persona, and her credentials and her big promises of high returns and riches. The Khoury’s finally realized that something was wrong in September of 2012, when they were about to purchase three buildings and Niew told them there was a problem. Indeed, there was always a problem; it was Niew herself; she was a crook.
Mercy of the court
Niew has thrown herself on the mercy of the court and she could wind up with 11 years in the slammer – and that’s before the other state and investors weigh in with their cases. Oh, they are trying to claim money for the naïve couple alright. Niew lived well, driving nice cars and living in a 5500 square foot home and all that. However, it is doubtful that when all is said and done, the Khoury’s will see much more than pennies on the dollar.
Amazingly, this is not the first time that people blinded by celebrity financial gurus have been taken to the cleaners. I guarantee there will be more of such cases because people place their common sense on ethical hold when it comes to due diligence.
Here is a hint: because a financial advisor makes it to local, regional or national radio or television is absolutely no assurance that they are honest, ethical or even know what they’re talking about. There is a point at which many of them believe in the false image they portray to the world. Self-deception is a very powerful drug.
There are no magic get-rich-quick schemes and unless you have found a credentialed financial advisor with broad experience, a proven track record and dozens of client referrals, stay very far away.
I feel very badly for the Khoury’s but they are not without blame. As for Niew, since she is supposedly so good with numbers, she should have a bright future in the license plate shop.
