---
title: How to Spot a Crooked Financial Adviser
description: Liz Davidson has four tips for choosing a financial adviser who won't rip you off.
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  - name: George Mannes
    url: https://money.com/author/george-mannes/
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published: '2016-03-11T11:30:51.000Z'
modified: '2024-04-16T10:01:46.000Z'
section: Personal Finance
tags:
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  - liz davidson
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type: Article
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> **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/).

![Screen Shot 2016-02-25 at 1.02.47 PM](https://img.money.com/2016/02/screen-shot-2016-02-25-at-1-02-47-pm-e1456423764690.png)

Liz Davidson, CEO of [Financial Finesse](http://www.financialfinesse.com) and author of [*What Your Financial Advisor* Isn't *Telling You*](http://www.amazon.com/Liz-Davidson/e/B019PGJ6YA/ref=dp_byline_cont_book_1), has some tips for how to spot a crooked financial adviser.s

To avoid falling for a scam run by another [Bernie Madoff](https://money.com/bernie-madoff-new-ponzi-schemes/), look out for these warning signs.

-   **High, consistent returns.** The stock market is a volatile machine. Anyone who says he can beat the market on a steady basis is probably lying.
-   **Statements sent directly from your adviser.** Your financial statements shouldn't be mailed to you directly by "your guy." Instead, they should come from an independent third party that's the custodian of your investment: the "broker of record."
-   **There is no "secret formula."** It would be nice if there was, but there isn't, so beware of any adviser who tells you he's come up with a special system for beating the market.
-   **Beware promises of low risk.** There is always risk when you invest your money. An adviser should never make the unrealistic promise of high returns with low risk.

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