"Funds of hedge funds generally aren't a good investment for the unsophisticated investor," he said.

This time the villains are mutual funds, usually deemed a safe haven for unsophisticated investors.

"401(k) participants are often very unsophisticated investors," he said.

But for sales people, it provides the opportunity to more easily exploit unsophisticated investors.

"The unsophisticated investor may rush into the stock market," he said.

The bonds will be especially attractive to unsophisticated investors who wish to avoid buying stocks.

But industry and Government experts say the company is going too far by implicitly promising overnight wealth to relatively unsophisticated investors.

For the larger universe of small, unsophisticated investors who were deceived into buying the partnerships, the class action is less attractive.

According to locals, the stock's spectacular rise drew new, unsophisticated investors into the market.

Too often I have seen unsophisticated investors put their large nest egg into one deal and lose most of it rapidly.