As early as 2009, Rating & Investment Information, Inc. (R & I) warned in its newsletter that ALJ Investment Advisors Co. , an asset management firm, had â€œunnaturally stable returns.â€ That is, despite what was happening in the market, ALJ was always 5 -10%. During the same period, other investment firms never posted more than three consecutive years of positive returns. R & I called ALJ a â€œJapanese Madoff,â€ and discussed its concerns with Japanese regulators. No one took any action, including the pension plan beneficiaries whose assets were managed by ALJ. If it sounds too good to be true, and an asset management firm is defying the market, pause, think, investigate, and proceed to collecting your dough. But, for 2 years, everyone continued as if there had been no warning sign.
On February 24, 2012, ALJ halted operations after disclosing that it had lost most of the $2.3 billion in pension funds that it had under management. R & I sounded the alarm â€“ no one can keep those kinds of returns going, just as with Madoff, but no one heeded the warning. R & I notified regulators, just as with Madoff, but no one heeded the warning. History repeats, and, unfortunately, the losses to investors just keep coming. No dough left for anyone now.