Table A1. Verbatim red flag category...

Table A1.

Verbatim red flag category identification and analyses

Step 3 – Code identification and initial coding			Step 4 – Filtering and grouping the data			Step 5 – Code word theme analyses and red flag category identification
No.	Verbatim red flag data	Code word	Code word	No.	Verbatim red flag data	Category code words	No.	Verbatim red flag data
1	“high investment returns”	Returns	Audits	14	“lack of outside audits”	Investment (Investment, investors, risk and unlicensed)	4	“unregistered investments”
2	“little or no risk”	Risk	Perpetrator	11	“one person or tightly controlled investment company”		13	“no separation of fund raising and investment duties”
3	“overly consistent returns”	Returns	Perpetrator	32	“perpetrator is charismatic and apparently trustworthy”		25	“exclusive investment opportunity”
4	“unregistered investments”	Investment	Company	34	“little or no company history”		31	“word of mouth advertising”
5	“unlicensed sellers”	Unlicensed	Company	35	“lack of details about the company, its processes and procedures”		36	“statements and or endorsements about the company from unknown sources”
6	“secretive and or complex strategies”	Strategy	Investment	4	“unregistered investments”		37	“new markets or industries with an unknown history and or little to no regulation”
7	“issues with paperwork”	Paperwork		13	“no separation of fund raising and investment duties”		12	“growing pool of common investors”
8	“difficulty receiving payments”	Payments		25	“exclusive investment opportunity”		2	“little or no risk”
9	“guaranteed return”	Returns		31	“word of mouth advertising”		22	“little risk for the investor”
10	“promise of above market returns”	Returns		36	“statements and or endorsements about the company from unknown sources”		5	“unlicensed sellers”
11	“one person or tightly controlled investment company”	Company/Perpetrator		37	“new markets or industries with an unknown history and or little to no regulation”		16	“lack of professional licensing”
12	“growing pool of common investors”	Investors	Investors	12	“growing pool of common investors”	Payments (Payments and paperwork)	7	“issues with paperwork”
13	“no separation of fund raising and investment duties”	Investment	Lifestyle	19	“extravagant lifestyle”		18	“difficult to track assets”
14	“lack of outside audits”	Audits		27	“lavish lifestyle of perpetrator”		30	“non standard account statements”
15	“lack of transparency”	Strategy		38	“owners, executives and or management living an extravagant lifestyle despite the relative immaturity of the company”		8	“difficulty receiving payments”
16	“lack of professional licensing”	Unlicensed	Paperwork	7	“issues with paperwork”		26	“waiver of customary fees”
17	“claim of special or proprietary investment strategy”	Strategy		18	“difficult to track assets”		28	“pressure to reinvest earnings and forgo any pay out”
18	“difficult to track assets”	Paperwork		30	“non standard account statements”		29	“delays in paying earnings”
19	“extravagant lifestyle”	Lifestyle	Payments	8	“difficulty receiving payments”		40	“pressure to maximise investment funds”
20	“a promise of unreasonably high returns”	Returns		26	“waiver of customary fees”		42	“inability to liquidate the investment”
21	“overly consistent positive returns”	Returns		28	“pressure to reinvest earnings and forgo any pay out”	Perpetrator (Lifestyle, audits, perpetrator and company)	19	“extravagant lifestyle”
22	“little risk for the investor”	Risk		29	“delays in paying earnings”		27	“lavish lifestyle of perpetrator”
23	“short time period until promised returns are generated”	Returns		40	“pressure to maximise investment funds”		38	“owners, executives and or management living an extravagant lifestyle despite the relative immaturity of the company”
24	“vague explanations regarding how the investment plan works”	Strategy		42	“inability to liquidate the investment”		14	“lack of outside audits”
25	“exclusive investment opportunity”	Investment	Returns	1	“high investment returns”		11	“one person or tightly controlled investment company”
26	“waiver of customary fees”	Payments		3	“overly consistent returns”		32	“perpetrator is charismatic and apparently trustworthy”
27	“lavish lifestyle of perpetrator”	Lifestyle		9	“guaranteed return”		34	“little or no company history”
28	“pressure to reinvest earnings and forgo any pay-out”	Payments		10	“promise of above market returns”		35	“lack of details about the company, its processes and procedures”
29	“Delays in paying earnings”	Payments		20	“a promise of unreasonably high returns”	Returns (Returns)	1	“high investment returns”
30	“non standard account statements”	Paperwork		21	“overly consistent positive returns”		3	“overly consistent returns”
31	“word of mouth advertising”	Investment		23	“short time period until promised returns are generated”		9	“guaranteed return”
32	“perpetrator is charismatic and apparently trustworthy”	Company/Perpetrator		33	“unrealistic and or unproven rates of return”		10	“promise of above market returns”
33	“unrealistic and or unproven rates of return”	Returns	Risk	2	“little or no risk”		20	“a promise of unreasonably high returns”
34	“little or no company history”	Company/Perpetrator	Risk	22	“little risk for the investor”		21	“overly consistent positive returns”
35	“lack of details about the company, its processes and procedures”	Company/Perpetrator	Strategy	6	“secretive and or complex strategies”		23	“short time period until promised returns are generated”
36	“statements and or endorsements about the company from unknown sources”	Investment		15	“lack of transparency”		33	“unrealistic and or unproven rates of return”
37	“new markets or industries with an unknown history and or little to no regulation”	Investment		17	“claim of special or proprietary investment strategy”	Strategy (Strategy)	6	“secretive and or complex strategies”
38	“owners, executives and or management living an extravagant lifestyle despite the relative immaturity of the company”	Lifestyle		24	“vague explanations regarding how the investment plan works”		15	“lack of transparency”
39	“investing in complex or difficult to understand transactions where investment success is dependent on someone’s unique expertise”	Strategy		39	“investing in complex or difficult to understand transactions where investment success is dependent on someone’s unique expertise”		17	“claim of special or proprietary investment strategy”
40	“pressure to maximise investment funds”	Payments		41	“overly aggressive investment tactics”		24	“vague explanations regarding how the investment plan works”
41	“overly aggressive investment tactics”	Strategy	Unlicensed	5	“unlicensed sellers”		39	“investing in complex or difficult to understand transactions where investment success is dependent on someone’s unique expertise”
42	“inability to liquidate the investment”	Payments	Unlicensed	16	“lack of professional licensing”		41	“overly aggressive investment tactics”

Step 3 – Code identification and initial coding			Step 4 – Filtering and grouping the data			Step 5 – Code word theme analyses and red flag category identification
No.	Verbatim red flag data	Code word	Code word	No.	Verbatim red flag data	Category code words	No.	Verbatim red flag data
1	“high investment returns”	Returns	Audits	14	“lack of outside audits”	Investment (Investment, investors, risk and unlicensed)	4	“unregistered investments”
2	“little or no risk”	Risk	Perpetrator	11	“one person or tightly controlled investment company”		13	“no separation of fund raising and investment duties”
3	“overly consistent returns”	Returns	Perpetrator	32	“perpetrator is charismatic and apparently trustworthy”		25	“exclusive investment opportunity”
4	“unregistered investments”	Investment	Company	34	“little or no company history”		31	“word of mouth advertising”
5	“unlicensed sellers”	Unlicensed	Company	35	“lack of details about the company, its processes and procedures”		36	“statements and or endorsements about the company from unknown sources”
6	“secretive and or complex strategies”	Strategy	Investment	4	“unregistered investments”		37	“new markets or industries with an unknown history and or little to no regulation”
7	“issues with paperwork”	Paperwork		13	“no separation of fund raising and investment duties”		12	“growing pool of common investors”
8	“difficulty receiving payments”	Payments		25	“exclusive investment opportunity”		2	“little or no risk”
9	“guaranteed return”	Returns		31	“word of mouth advertising”		22	“little risk for the investor”
10	“promise of above market returns”	Returns		36	“statements and or endorsements about the company from unknown sources”		5	“unlicensed sellers”
11	“one person or tightly controlled investment company”	Company/Perpetrator		37	“new markets or industries with an unknown history and or little to no regulation”		16	“lack of professional licensing”
12	“growing pool of common investors”	Investors	Investors	12	“growing pool of common investors”	Payments (Payments and paperwork)	7	“issues with paperwork”
13	“no separation of fund raising and investment duties”	Investment	Lifestyle	19	“extravagant lifestyle”		18	“difficult to track assets”
14	“lack of outside audits”	Audits		27	“lavish lifestyle of perpetrator”		30	“non standard account statements”
15	“lack of transparency”	Strategy		38	“owners, executives and or management living an extravagant lifestyle despite the relative immaturity of the company”		8	“difficulty receiving payments”
16	“lack of professional licensing”	Unlicensed	Paperwork	7	“issues with paperwork”		26	“waiver of customary fees”
17	“claim of special or proprietary investment strategy”	Strategy		18	“difficult to track assets”		28	“pressure to reinvest earnings and forgo any pay out”
18	“difficult to track assets”	Paperwork		30	“non standard account statements”		29	“delays in paying earnings”
19	“extravagant lifestyle”	Lifestyle	Payments	8	“difficulty receiving payments”		40	“pressure to maximise investment funds”
20	“a promise of unreasonably high returns”	Returns		26	“waiver of customary fees”		42	“inability to liquidate the investment”
21	“overly consistent positive returns”	Returns		28	“pressure to reinvest earnings and forgo any pay out”	Perpetrator (Lifestyle, audits, perpetrator and company)	19	“extravagant lifestyle”
22	“little risk for the investor”	Risk		29	“delays in paying earnings”		27	“lavish lifestyle of perpetrator”
23	“short time period until promised returns are generated”	Returns		40	“pressure to maximise investment funds”		38	“owners, executives and or management living an extravagant lifestyle despite the relative immaturity of the company”
24	“vague explanations regarding how the investment plan works”	Strategy		42	“inability to liquidate the investment”		14	“lack of outside audits”
25	“exclusive investment opportunity”	Investment	Returns	1	“high investment returns”		11	“one person or tightly controlled investment company”
26	“waiver of customary fees”	Payments		3	“overly consistent returns”		32	“perpetrator is charismatic and apparently trustworthy”
27	“lavish lifestyle of perpetrator”	Lifestyle		9	“guaranteed return”		34	“little or no company history”
28	“pressure to reinvest earnings and forgo any pay-out”	Payments		10	“promise of above market returns”		35	“lack of details about the company, its processes and procedures”
29	“Delays in paying earnings”	Payments		20	“a promise of unreasonably high returns”	Returns (Returns)	1	“high investment returns”
30	“non standard account statements”	Paperwork		21	“overly consistent positive returns”		3	“overly consistent returns”
31	“word of mouth advertising”	Investment		23	“short time period until promised returns are generated”		9	“guaranteed return”
32	“perpetrator is charismatic and apparently trustworthy”	Company/Perpetrator		33	“unrealistic and or unproven rates of return”		10	“promise of above market returns”
33	“unrealistic and or unproven rates of return”	Returns	Risk	2	“little or no risk”		20	“a promise of unreasonably high returns”
34	“little or no company history”	Company/Perpetrator	Risk	22	“little risk for the investor”		21	“overly consistent positive returns”
35	“lack of details about the company, its processes and procedures”	Company/Perpetrator	Strategy	6	“secretive and or complex strategies”		23	“short time period until promised returns are generated”
36	“statements and or endorsements about the company from unknown sources”	Investment		15	“lack of transparency”		33	“unrealistic and or unproven rates of return”
37	“new markets or industries with an unknown history and or little to no regulation”	Investment		17	“claim of special or proprietary investment strategy”	Strategy (Strategy)	6	“secretive and or complex strategies”
38	“owners, executives and or management living an extravagant lifestyle despite the relative immaturity of the company”	Lifestyle		24	“vague explanations regarding how the investment plan works”		15	“lack of transparency”
39	“investing in complex or difficult to understand transactions where investment success is dependent on someone’s unique expertise”	Strategy		39	“investing in complex or difficult to understand transactions where investment success is dependent on someone’s unique expertise”		17	“claim of special or proprietary investment strategy”
40	“pressure to maximise investment funds”	Payments		41	“overly aggressive investment tactics”		24	“vague explanations regarding how the investment plan works”
41	“overly aggressive investment tactics”	Strategy	Unlicensed	5	“unlicensed sellers”		39	“investing in complex or difficult to understand transactions where investment success is dependent on someone’s unique expertise”
42	“inability to liquidate the investment”	Payments	Unlicensed	16	“lack of professional licensing”		41	“overly aggressive investment tactics”

Source: Author’s synthesis

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