Claud R. Koerber, FranklinSquires Founder and CEO, recently addressed this question publicly by issuing the following statement:

There have been a few isolated instances over the last couple of years where I receive a phone call or letter from someone claiming to have money invested with FranklinSquires. I am always saddened on such an occasion. Since FranklinSquires does not accept outside investments, those mistakenly believing that they have invested money with FranklinSquires have either been deceived by someone or have been less than diligent in their own stewardship—thus violating a number of the key principles of prosperity. The most disturbing part of this issue to me is that a person with this mistaken belief is gambling. There is a remedy to being vulnerable to this type of deception: close the door on your own willingness to violate principle (particularly the destructive motivation to want “something for nothing” and the behavior of seeking gain through gambling).

Most of the time questions like this stem from a simple misunderstanding. Usually the person involved has partnered with or loaned money to someone who I am currently doing business with; someone I’ve done business with in the past; or someone who I might associate with publicly. Often it is a business or person I think highly of and is engaged in what I consider to be a good business consistent with principle. 

The problem of such instances resides in the fact that both the so-called investor and the person accepting the money are not being diligent in adhering to the principle that “Agency Implies Stewardship.” By not paying close attention to the details, the so-called investor has not taken the responsibility to gather the facts and to ensure clarification on key elements of the investment. This can be corrected by “turning your brain on” and doing simple research for verification. Such “brain on” activity, in all cases I’m familiar with, has resulted in a stronger relationship between all involved and has manifested behavior more consistent with being a producer.   

I am aware that there have occasionally been those who, well intentioned or not, have tried to “trade on my name” by using their association with me or a business with which I am associated. Such action deceptively implies that it was really I who was seeking the investment. Let me make it extremely clear to all within the sound of my voice in this audience or in future audiences who may watch or listen to this recording. Since founding FranklinSquires, I have never asked for a single dollar of investment from anyone. 

Individuals and businesses regularly seek me out to partner or to invest in business ventures. I appreciate such overtures extended to me, but I decline almost all such invitations. To the best of my knowledge, I can think of only six people in the last five years that I have chosen to allow investing in any of my businesses without being an active owner in the venture. With over 30 separate autonomous business ventures, I have fewer than 40 partners; and in all 30 + companies there are fewer than 10 outside investors. In businesses where I have controlling interest and am most active, I maintain no outside investors—which is the case with FranklinSquires. 

I am opposed to gambling, either my own or those around me. My policy of refusing outside investments is generally the most direct way to chart a course that clearly avoids this critical violation of principle.

Only those in the consumer paradigm of scarcity are willing to gamble. I refer to gamblers as those who willing put their money into some business, venture, scheme or structure without having a reasonable understanding of a) the relevant risks involved b) the process of value creation by the particular business, venture, scheme, etc. and c) the principled exchange(s) upon which the value creation is based. A consumer making such investments is trapped into thinking that “Price” is the decision making factor and that a high return (usually a high rate of interest) justifies taking the risk. Unfortunately, these consumers are self-deceived and will fail. Prosperity is not a matter of luck or chance (gambling). Only those who are 1) willing to keep their eyes wide open 2) willing to be stewards over their financial resources and use them according to principle and 3) willing to ensure that the value they seek from any investment is a principled exchange will discover prosperity. 

Those who think they are “putting money in a holding fund or holding company,” without understanding the basic factors I’ve just described, are pretending to be producers at best. No one should think that they are excused from the principle of stewardship and sound judgment simply because someone or some company associated with me says, “This is a good investment.”

Although Les and I, and our associates, have often discussed investment-related information, nothing in any of our discussions, teachings, lectures, etc., is now or has been in the past a recommendation to purchase, sell, hold any security or other investment or to pursue any investment style or strategy. Our teachings and comments have focused on principles, using techniques as illustrations. I think this point is made abundantly clear in all our public presentations, but consumers sometimes want to put words in our mouths. We have repeatedly taught that anyone seeking investment advice would do well to first invest in their own education. Once a person has reached a point where their education enables them to answer their questions for themselves (self-reliance), they will likely never ask us for advice related to the investment questions they once had. 

If there ever has been occasion where clients or students have been given strategy related advice (I do not know of many such instances that we have not publicly corrected) as an endorsement of a particular product, investment or offering, this advice has been in direct contradiction to what we teach. When I teach individuals to invest in real estate, I never instruct them to do so because of my judgment. I teach them how to judge for themselves and how to be good stewards over their own human life value and property value.

I (and any company where I have direct ownership or control) do not nor have in the past given any advice or recommendation as to whether any security or investment is suitable to any individual or family; nor have I suggested that any particular strategy will be profitable without following the principles I regularly set forth. 

Everyone who has listened to me for any length of time knows that nothing in my presentations is ever intended (and no one should consider anything in my presentations) to be investment, accounting, tax or legal advice. To the contrary, I have been involved in regularly and thoroughly teaching that the “do it yourself” approach to life (particularly investing) is not a virtue by itself; it is not the same as being self-reliant. Those seeking such advice should seek education first and then consult with principle-based financial advisors, accountants or attorneys regarding their individual, unique circumstances and desires.

Those who have implied directly or tacitly that I have endorsed any particular strategy, investment, company or endeavor should be challenged to produce credible evidence of such. I am repeatedly hearing of individuals (who have taken classes from me) that are seeking money from students for their own pet project by claiming that they have my endorsement or the endorsement of one of my partners. If I am endorsing something, rest assured it will not be a cryptic vague endorsement. I will come out and say it. When I endorse something or someone, I do it openly and candidly. 

I endorse the idea of being an entrepreneur, but I do not endorse all entrepreneurs. I endorse the idea of Equity Milling™ in the context of the principles I regularly teach. This does not mean that everyone who says they are Equity Milling™ know what they are doing or even know what they are talking about. I endorse real estate investing, but I do not endorse all approaches to real estate investing. I endorse the idea of life insurance, but I have never endorsed a particular strategy or product; and I certainly have not endorsed the buying of life insurance—except within the context of the principles of prosperity. 

Be not deceived. There is no way around stewardship for those who seek true prosperity. Those who are gambling by pretending to be producers are dangerous to themselves and to those around them. My advice to one and all is “Wake Up; Turn Your Brain On!” and make decisions based upon your own rational self-interest. Do not be easily persuaded by those whose words seem to contradict your own reasoning. Either you must think through the issue more diligently until you can resolve the contradiction in your mind or those doing the persuading should be thoroughly questioned until you know for certain the best course forward. The economic value of certainty is cherished by the producer while the consumer keeps looking for the lower price or the high promised return—without considering that they themselves are the only real investment they will every make. 

Let me conclude with a message that I have taught publicly and repeatedly. There are no good investments or bad investment. There are only good investors and bad investors. Those who gamble, those who seek something for nothing, those who seek to get gain while violating principle are living in scarcity and will experience the attendant consequences over and over. The only remedy for the consequences of scarcity is principle-based living—where life is lived as the abundant blessing God intends for all who choose it.