The 5 Star Wealth Manager Scam
Bryan Binkholder and Blue Ocean Portfolios have been announced as proud winners of the ‘5 Star Wealth Manager Award’ and were featured in St. Louis Magazine in the Month of March 2010. Unfortunately, this entire award is a scam designed to help Financial Salespeople win the trust and admiration of consumers. I was contacted by the company that does the ‘research’ and I audio taped all the conversations as they described how they selected winners. Based on the information given, I knew that it was statistically IMPOSSIBLE for somebody to have nominated me. Armed with my presumed beliefs, I contacted my clients inquiring of each if they had nominated me. As much as I was hoping that statistically maybe I was the 1 in 2 million, I found that no one had even received a nomination card (from what they could recall). When I asked the company for a copy of the nominations they received “from my clients”, they of course could “not release that information” to me. This company–Crescendo Marketing– conveniently has a ‘3rd Party’ that does the ‘research’ so it is extremely hands-off. Most likely this is done to protect them legally if and when someone like myself calls them on the carpet.
In order to show consumers the full extent of the scams that flood the investing industry (and to avoid accusations that I was suggesting it was a scam “only because I didn’t win”) I purposely accepted the award (see the PDF copy of the magazine). And for only a few thousand dollars I can tell the world that I’m a “5 Star Wealth Manager” award winner! (*see attachments below)
Always be aware of marketing awards, marketing materials or anything else that announces a firm or individual is ‘The Top of The Top!’ These ploys are common when it comes to trying to set yourself above others and provide a 3rd Party that says…. “Hey, this guy is good.” Notice on the St. Louis Magazine site they also do this for Realtors and Mortgage people. Notice there aren’t any 5 Star Awards for Attorneys? The reason is that attorneys must abide by a higher code of ethics that prevents them from being involved in a sham such as this one.
My comment and thought to ponder is this–If an advisor is spending $5,000 to $10,000 on this award to market it, they are either obviously doing it to ‘DUPE’ a consumer or they are so blind that they can’t see how much of an obvious scam this is to the industry and the consumer.
In either case, WHY WOULD YOU WANT THEM HANDLING YOUR MONEY???????
*Check out the attached ‘order form’ to see the options advisors/salespeople have to “show your expertise and service.” Remember, tell others and let them know that this is a 5 Star Scam!
5 Star Wealth Manager Sell Sheet
5 Star Wealth Manager– St. Louis Magazine Award Winners
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Great blog!! This thing is a real joke. I won it supposedly. I work in the back office at my firm…..how is that possible?
Funny, I know a few 5 Star Wealth Managers from MA and none of them paid a thing for the award.
Bryan, thanks for your research. You helped me with my consumer advocacy site
There is a disclaimer on the award called research declarations that states that Wealth Managers DO NOT pay a fee to be included in the research or the final list. Do you have any thoughts on this misunderstanding……..
You are correct! If you watch my video you see how I WON THE AWARD and did not pay for it. There are many advisors that ‘win’ and do not pay. The issue is that many of the advisors DO PAY 2-8k or more to create a phony image to clients. Like I mentioned: 1) they are either oblivious and have not done research to understand this award is a joke and so why would you invest with them (those that paid money to have ads and etc) or 2) the know it’s a joke but participate to dupe investors and gain confidence. That’s the only options I see. The rest of the guys (like me) get the award and do nothing with it because we see if for what it is. I will say the most amazing thing is they’ve never followed through with their lawsuit against me so obviously they know the Five Star Program is a Scam to dupe investors and advisors.
That is all correct. I received the award too and was completely shocked. Did not have to pay and received a three line mention in the paid add, which included my name, business name and what we did, TX (Tax) IV (investments). But I was definitely pressured for a few months prior to the Add coming out, to purchase more space and have my picture included. It all seemed very fishy to me and mentioned that to the caller but they said a lot of research was done and follow up surveys were conducted to verify the info. I was also surprised to see that it said “Special Advertising Section” at the top of the “article”. Also lots of pressure after the add comes out to purchase the re-prints and plaques and other merchandising paraphernalia. I guess from looking at these responses people don’t want to believe it’s a scam but it sure seems like it to me. I sure wouldn’t feel comfortable marketing this to clients or prospective clients. Thanks Bryan.
John it is great to hear from another fellow advisor that has understood how corrupt this award is. Look folks….John is also an advisor (www.comprehensivefh.com). I always hear from advisors that have won this and crooks from the company trying to act as outside people saying this award is for real but it is such a joke. Like I’ve said when they’ve threatened me with legal action……SO ME THE PROOF! I won and all I want to see are the people who have said I’ve done such a great job. Right on John and I commend you for recognizing this and taking the time to see what it really was. You are one of the few my friend!
In Denver this award is published in 5280 and ColoradoBiz Magazines. As a subscriber to 5280 I received a survey several months prior to the 2009 awards (first year here in Denver). The survey asked a lot of information about what I would expect of a financial advisor and in the end it allowed me to provide the name of an advisor I felt exemplified those characteristics. Everyone else I knew who subscribed to 5280 Magazine received the same surveys. I don’t know anyone who subscribes to ColoradoBiz so I cannot attest to that publication. I, and many people I know, did respond and nominate our advisors. I am very proud of the way mine helped our family navigate through 2008 and I even called to tell him I responded to some survey about him, only to learn he had won later. Perhaps you are misinformed and just weren’t aware, and your clients weren’t aware, of the survey they completed and what it was for. From my perspective this was a legitimate survey and recognition.
As a winner of the Five Star Wealth Manager Award I will tell you—–Fantastic David! I’m happy to hear you think this is a legit award. I won it and I don’t think it is for all the reasons stated in my 2 posts.
I will say i don’t know many CONSUMERS who would go about searching the internet for information on the 5 Star Wealth Manager Scam to then go place a post telling how great it is. That alone has my curiosity up but then I think….ok maybe but someone who is ‘inclined to post’ and participate on website most likely posts other places and I can’t find your handle, name or email listed anywhere. Honestly, you’ve got my mind racing. I just don’t see a consumer doing this……….or….unless a famly member is an advisor that won????? I am just very leery but I’ll post your comment anyway out of freedom of speech.
Regardless I will tell you the thing is a joke and I am not ‘misinformed.’ Remember– I am a Five Star Wealth Manager! I’ve also had numerous call from advisors who have ‘WON’ that have called recently and one guy just called from Schwab last week and he’s only been in his area for 6 months and he supposedly won. How can that be possible???? As he noted, he works in the back office and doesn’t handle clients. Like I said in my post and in my letter to their law firm that threatened me 1 year ago (the were going to sue me if I didn’t take it off)…….I responded just show me all the clients who responded because none of my clients could remember doing so. I know, the population is aging and people forget but come on………Considering this page (Five Star Wealth Manager Scam) gets about over 800 hits a month on average, I’d think they shut me up if they had a case especially since they already threatened me December of 2010. Until they show some facts I’ll continue to call it like it is. Besides, I WON THE AWARD DAVID!!!!! I’m a Five Star Wealth Manager!!!!!
Bryan, this link provides a good description of how the award program works. I hope it helps your discussions.
http://www.fivestarprofessional.com/2011/wealth_managers_research_detail.php
Thanks. If you have the time please watch my videos. I detailed their ‘process’ and how it was impossible based on their supposed research firm’s findings for me to have been chosen. I also detailed how they use a company (located in the same building no less) that does their research. To me, this is a great way to have a company handle research so if anybody sometime claimed (like me that it was impossible) they have deniability. Please also notice my response to their law firm after a lawsuit of defamation was floated by 5 star wealth manager award (five star professional, five star professional program). I happily offered to drop my videos and sites (which get hundreds of hits to this post a day) if they produced the records of my ‘clients’ responses because none of my clients recall. Now one client did die so that could be 1………HA…..just kidding. As a guy from Schwab who called me said……I won the award yet I work in the back office and don’t have 1 client. I thought it was a joke and then I found your post.
From New Jersey and a law firm handling estates and trusts I was looking into boasts this five star rating which now casts alot of doubt on how smart these guys are. Thanks for the info. I went to their internet site to find the list of recommended accountants in New Jersey and found no way to get that info.
Thanks Eric. You won’t find CPA’s on there since they have a high degree of professional regulation regarding their CPA name and etc. Your making the right decision because the guys are either trying to ‘create an image’ or they just don’t take the time to see what a joke it is. Now if they just mention it on something I’m not as concerned but when they have the full page reprints…..make it the central focus on their site or in their office they are frankly trying to pull the wool over somebody’s eyes. Funny story just happened–actually 2. One guy from Charles Schwab called and won it but was suspicious so he called me. Brand new to an area and had no clients, worked in the back office and he won!!!!! Another guy applied for a job as a property manager for my rentals that I own and on his resume was Five Star Wealth Advisor. We had a hilarious talk about it and the guy knew it was a joke but it helped him earn some trust and business. It’s sad but that’s what this is–a way to dupe trusting people into believing something that’s not true.
I’ve never paid for this award, and I’ve “won” it twice. I know which client nominated me. If this is the sole reason someone chooses to do business with an advisor they are stupid. But, if it gets you a “second look”, combined with REAL due dilligence, then it’s worth it. As much as “marketing” may seem evil to you, it is in fact how business operates – you have to “market” yourself. If you don’t deliver the goods, then shame on you; but if you do, then what’s the harm in showcasing an award?
Congratulations on your winning the five star wealth manager award! As a fellow winner kudos! Now, the real thing is by their own research you should have 25% of your clients who participated. They are 95% sure that at least 18% participated and nominated you. I contacted all of my clients since I only had about 50 at the time I won it. Couldn’t find a one. Even asked the company when they threatened me with a lawsuit of defamation to produce it and I’d drop everything. I still hold true to that statement. I won……..now if you saw I am defaming you show me the proof! Can you honestly look anyone in the eye and say you believe (I don’t know how big your practice is) that 18% of your clients were surveyed? Secondly, there is no cost for the award to win it. I didn’t pay a dime except that STUPID plaque I bought to show on this video and to laugh at with clients and others….(funny they’re still trying to have me buy more plaques almost 2 years later for $150). Lastly, I am the biggest marketer out there VG along with the biggest capitalist you’ve ever seen. The problem I have is deceptive marketing that is so blatant at producing trust that really shouldn’t be there. There are plenty of other ways to show your ability instead of this! That’s the beauty of free markets and voting with your dollars coupled with information. The Five Star Wealth Advisor Program or the Five Star Professional is simply a ‘zigma nu’ designation. It’s something you buy to put on your resume to look good. but it doesn’t mean anything.
Bryan,
As a fellow “winner” of this award for the past 2 years, I have always thought this was a joke – and have never told my clients/prospects about it. I told their sales guys to stop calling me about buying ad space and thougth that they would stop “nominating” me. It did not work – I am nominated again this year. I am going to ask them for a list of my cleints that nominated me. Should be fun.
I was interested to hear about your discussions with their lawers. It speaks volumes. I suspect you will not hear from them again.
What this all tells me is that there is a demand for a independent ranking of investment professionals. Maybe Morningstar or S&P will fiqure out a way to make money providing an evalatuion service.
Keep up the good fight.
Best,
John
Kudos to you ‘ fellow 5 Star Wealth Manager’ and straight shooter! It’s people like us that will clean this industry up. The funny part is I still get emails from my award in 2010 wanting me to buy more plaques! My friends company at Blue Ocean Portfolios has 4 of their call center people who are not even meeting with clients ‘nominated.’ I did notice they seem to have changed it from ‘customer referrals’ to ‘professional nominations.’ Funny but I’m pretty sure the scam is somewhat up but it will go on with advisors making this to be something it isn’t. Thanks John. Appreciate you.
Bryan,
I am another St. Louis-based advisor, only four years into building my business. I’m having very good success, but not to the point where I would expect any “awards”, real or otherwise. I was contacted about this and was immediately skeptical. I called and talked to their people and got the same song and dance as most of the honest entries on this site. I even specifically asked them if there was anything EVER that I needed to purchase associated with this award, and of course the woman told me no.
I then researched it and watched your video, which only confirmed what I already suspected. The final piece of the puzzle for me was seeing some of the names of the advisors who had purchased the ads in their publication — wow, what a list! I was a mutual fund/annuity wholesaler for about 5 years, and left the business because I wasn’t very good at BS-ing people or downright lying, which unfortunately is a big part of what many of them do. I know or know OF a lot of the St Louis advisors. Many of those on this list I wouldn’t by a CD from, much less trust their investment advice. There are at least two that I know for a fact — with evidence — that they lie to their clients. Unbelievable. I leave this as “anonymous”, because I don’t want my firm associated with these comments — I make these comments on my own. I have supplied my actual email address, however, if you want to contact me for any reason.
Some of your points make sense, but I don’t think overall that it is a scam. I was nominated this year for the first time after 4 years in the business (haven’t won anything yet). I received an email about 3 months ago from an estate planning attorney that I have worked with on a few clients, informing me that she had nominated me. She is not my client. So I don’t think your argument of calling all of your clients necessarily means you weren’t nominated by anyone. You would have to call any industry contact you had ever worked with. I doubt the organization that runs 5-star runs around telling everyone that they have been nominated. Out of our office of 50 advisors or so, we have maybe 5 winners who seem to win year after year. I am guessing this is because the same people keep nominating them.
Now, to be fair, I don’t think 18% or 25% or whatever of my clients nominated me but I know someone did. And obviously the people who run this program are trying to make a buck off of selling you announcements and plaques. But it’s not a non-profit business they are running. They have to make money. And don’t they have to pay for the space in the magazines that they publish the results in? Makes sense that they would pass on the majority of the costs to the advisors that they are advertising for. I know here in Seattle, the ads are placed in Seattle Magazine, which is easily the most expensive magazine in Seattle to take out an ad in.
I think that perhaps the selection criteria might be too lenient. That would be a valid argument. But to say this is a complete scam is pretty over the top.
Hey Honest Advisor it’s good to see you had your eyes open and did your due diligence. Since you were a wholesaler before and had experience with reps I LOVE YOUR COMMENTS. Jim Winkelmann of Blue Ocean Portfolios who I trust and admire we have a common thread that we always ask advisors who they would send their wife to for advice if they died…..the advisors like yourself that unfortunately know how sleazy the industry is say NO ONE! How true your words are and unfortunately this is the norm for the industry I believe from being involved in it for 15 years plus and Jim having been in it for over 30 and having owned a Broker Dealer. Appreciate your comments
Hey Zach thanks for the comment. If you review my videos you’ll find THEIR OLD system prior to me distributing the facts
stated they had ‘statistical research by an outside firm QMI’ and that CLIENTS nominated advisors. I called this for what it was…..A CLEVER LIE! They then tried to hit me with a lawsuit of slander and I fought right back knowing I was right (please see my video explaining and discussing their legal threats). They have now changed their program!!!!! It no longer has CLIENT REVIEWS and instead is only….’peer reviews.’ I will tell you every rep in the Blue Ocean Portfolio office got a form for nominating people……They all nominated the others……we finally stopped because the entire process is a joke. I really think you should investigate it more because it will give you a bad name because once you know the facts it’s obvious you’re just trying to dupe people and that doesn’t sound like the type of person you are. Funny side note, a guy who applied to be my property manager since i own about 80 rentals sent in his resume……on it…….5 Star Wealth Manager…….first thing I asked…..wow you won that what do you think of it……..’it’s a joke.’