Posts belonging to Category Affinity Fraud

Church Bond Problems Can Be Prime Examples of Affinity Fraud


Investments aren’t always what they appear to be. On the surface, church bonds may appear like a safe and appealing investment. That is the way they are pitched by promoters and investment advisers. Investors are often motivated by appeals to support the church mission, and encouraged by quotations from scripture (“Give, and it will be […]

Securities Regulator Expresses Concerns about Church Bonds


Church bonds, and broker sales practices involving them, have earned a spot on the list of examination and enforcement priorities of the Financial Industry Regulatory Authority (FINRA) for 2012. FINRA is concerned about sales of church bonds arising out of brokers’ inappropriate sales practices, unsuitable product offerings and misrepresentation.

A Focus on Eliminating Elder Financial Fraud


We can all help eliminate financial fraud of the elderly. The elderly are common victims of financial fraud. Family members should be alert to warning signs that may signal a problem. Warning signs may include failure to pay bills, unopened statements from brokerage accounts, statements from a brokerage account the family was previously unaware of, […]

USA TODAY Article Highlights Some Dangers of Crowd-Funding


It will not be long before companies and individuals with no assets and no track record ? indeed anyone with a computer – can raise investment capital from ordinary folks over the internet with very limited disclosures and regulation. Crowd-funding, as the concept is known, was approved by Congress as part of the Jobs Act. […]

State Regulators are Filing More Claims Against Investment Advisers


Investment advisers and their firms are facing increased scrutiny from state regulators following enactment of the Dodd-Frank financial reform act and the high profile press coverage of the Madoff ponzi scheme and other fraudulent activities. The number of regulatory enforcement actions against investment advisers increased by 100 percent in 2011. Regulators are on the lookout […]

Elder Financial Abuse Continues to Ravage Seniors


Financial exploitation of older Americans is a big problem and it is getting bigger. An article by Wall Street Journal columnist Kelly Greene points out that senior citizens are “very vulnerable” to fraud and refers to a recent study by the Investor Protection Trust. The study polled hundreds of regulators, financial planners, healthcare professionals, social […]

New Scams Threaten Investor Nest Eggs


New types of scams are posing threats to investor well-being. The North American Securities Administrators Association (NASAA), a group of state securities regulators) has identified four new types of fraud to go along with the 6 persistent fraud threats that round out their Top Ten Threats to Investors.

Retirees Urged to Exercise Care When Facing a Bet-The-Future Decision


Many retirees are facing a bet-your-future decision fraught with significant risks as pension plans offer participants a one-time lump sum payout in exchange for giving up their monthly checks for life. Ford Motor Co. and General Motors Co. made headlines recently when they made that offer to their 130,000 nonunion retirees. With pension liabilities at […]

Georgia Investment Adviser Scams Clients Out Of $40 Million


At the behest of the Securities and Exchange Commission, the U.S. federal district court in Atlanta has issued an order freezing the assets of Aubrey Lee Price, a Georgia investment adviser, his PFG fund, and affiliated entities. The SEC has accused Price of committing a $40 million investment fraud. The SEC also says that Mr. […]

Old Age Is Golden For Scam Artists


The number of financial scams targeting seniors is dramatically increasing according to a survey conducted by the non-profit Investor Protection Trust. “Swindles targeting older Americans are a bigger problem today than ever before,” Don Blandin, president and chief executive of Investor Protection Trust, was quoted as saying (See “Survey reveals alarming rise in financial abuse […]