Avoiding Fraud

A little over a year ago we published a story in the Financial History section of this newsletter about the infamous Charles Ponzi, purveyor of a successful fraud scheme and the namesake of that method of fraud.  A few months later, Bernard Madoff was arrested for running a Ponzi scheme that defrauded his victims out of an estimated 65 billion (plus) dollars.  Since then more Ponzi schemes have begun to unravel, some having ties to victims and perpetrators in southern Utah.

Unfortunately, the current economic environment brings out the worst in fraudsters.  Continue to take measures to protect yourselves from becoming part of this growing trend.  Securities regulators have repeatedly offered cautions to help the public to avoid becoming fraud victims. 

Things to look out for include:  “Free Lunch” seminars, oil & gas mining schemes, fake internet sites, emails or phone calls soliciting confidential information, unregistered investments, unlicensed financial advisors, and any offers or promises of high returns with little or no risk.

If you know someone who may be getting involved in a questionable investment feel free to give them our contact information.  We will offer a complimentary review of their situation, and if needed, point out the danger signs.

Written By Kimber Heaton - CFP