Posts belonging to Category Affinity Fraud

Financial Crimes – How Should We Deal With Them?


Has the government gone too far in ignoring financial criminal conduct? Is the United States operating under an unspoken policy to refrain from prosecuting large financial institutions even if they believe criminal laws were violated? Are the regulators afraid that doing so might damage the economy? Those questions were raised in a recent Wall Street [...]

Aging of Population Raises the Bar for Advisers


The problems of elder financial abuse and loss of cognitive faculties due to aging are on a steep upward trend. The inability to manage money and make sound financial decisions is one of the earliest indications of Alzheimer’s disease.  Financial advisers should look out for clients who stop paying bills, seem addled about their assets, [...]

Victims of Elder Investment Fraud – A Growing Problem


Investment scams targeting senior citizens continue to proliferate in Georgia and across the country. In fact, the Atlanta Journal Constitution recently published an article dealing with financial fraud perpetrated against seniors.  The article (“Financial fraud scams target Georgia seniors”) focused on an 81 year-old lady who was the victim of a ponzi scheme.  A ponzi [...]

Some Warning Signs of Elder Financial Abuse


Financial exploitation of the elderly is a serious and growing problem that has affected, and sometimes devastated, many lives. We hear most often about exploitation by scam artists who are, at least initially, strangers to the victim. What may come as a shock is the fact that exploitation by trusted family members and others close [...]

Affinity Frauds Continue to Victimize Investors


Affinity fraud cases continue increase. Investors should be particularly careful when dealing with financial advisers with whom they share a common characteristic or interest. While that may sound counterintuitive, affinity fraud, which is based on such commonalities, has devastated many trusting investors. The affinity often involves something that has been an object of discrimination ? [...]

The Northern District of Georgia Sends a Strong Message to Ponzi Scheme Operators


Andrew Mackey, a recently convicted ponzi scheme operator who defrauded 160 metro-Atlantans through his company, ASM Financial Funding Corp., was sentenced to 27 years in federal prison by U.S. District Court Judge William Duffey. His common law wife, Inger Jensen, had already been sentenced to 14 years for her role in the fraud (“Man gets [...]

Elder Abuse Has Many Faces


The American Association for Justice recently published an interesting article regarding elder abuse that may be of benefit to many persons with aging parents or other loved ones that may be victims of elder abuse. (See “The Faces of Elder Abuse”, October 2012 issue of Trial magazine).

SEC Charges Former Atlanta Attorney with Investment Fraud


The Securities and Exchange Commission charged James S. Quay, age 50, a disbarred Atlanta attorney and unlicensed financial advisor, with defrauding two elderly women he convinced to invest with him directly. Mr. Quay is a convicted felon and had a history of steering retirees into fraudulent investment schemes, which he concealed from his victims, according [...]

Page Perry Pursuing Church Bond Loss Claims


Page Perry announces that it is investigating instances where church bonds were improperly sold to members of the investing public. Recently the firm has been approached by investors whom sustained devastating losses as a result of investing in church bonds and has found an array of misconduct by the sellers ranging from outright fraud to [...]

Church Bonds Have Claimed Many Victims


In recent years, church bonds have been hazardous for investors. Many of these investor losses can be attributed to the fact that church bonds were routinely sold by promoters and investment advisers as safe investments. These representations were simply untrue.

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 [...]