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In 1989, some of Florida’s most effective crime fighters were unleashed through the creation of the Attorney General’s Seniors vs. Crime Project. This Project, sponsored by my Office, allows seniors to be actively involved in their own and their younger citizens' protection. The volunteers, known as Senior Sleuths, (1) serve as eyes and ears to inform my office of current issues affecting seniors, (2) educate the public about scams and frauds, (3) provide on site help for seniors making large purchases, (4) assist law enforcement as actors with undercover operations and (5) manage consumer cases referred by my office or requested of the Project by other sources. These crime fighters are responsible for recovering millions of dollars for seniors who were intentional or unintentional victims of con artists or honest businesses. Volunteers work throughout the state in locations known as Offices. More than 3,000 Senior Sleuth volunteers provide important assistance to the state's crime fighting effort from those Offices or from the comfort of their homes. Unethical businesses and individuals may believe that their senior target is helpless, when, in fact, the "target" may be working for the Attorney General or local law enforcement in an undercover role. Few volunteer opportunities permit this level of involvement for seniors in their own protection. I am proud to be a partner with these outstanding citizens. Please give the Seniors vs. Crime Project a chance to help with your consumer related complaint by calling 1-800-203-3099 or request help through their web site. Pam BondiAttorney General Scam of the week
Scam of the Week: Ponzi scheme
The publicity surrounding the conviction
of former stockbroker and investment advisor Bernie Madoff brought to light an
old scam called a Ponzi scheme. Named after Charles Ponzi who was infamous for
using this scam technique in 1920, the scam takes money from investors and uses
it to support payments to early investors and the scammer. In other words, it
represents a fraudulent business that pays returns to some investors but not
from the profits of the company. The lucky ones that receive money back get
either some of their own money returned or money that belongs to later
investors.
Out of the 43 total cases the local
Seniors vs Crime office has handled,
one in particular resembled the classic Ponzi scheme. A distinguished elderly
gentleman contacted our office one day and told us that he had lost
$100,000 of his retirement money in a bad investment. His son had
convinced him that the investment was a sound one. When we interviewed the son,
he told us that he had indeed made a 50% return on his investment. He also
claimed to be a good friend of the executive of the company. When the father
first visited the investment company's office in Orlando, he was impressed with
its' office on one of the top floors of a new high rise. And the rate of return
promised on his $100,000 was very impressive as well; after 12 week's the
investment would be worth $1,775,000. That claim should remind you of the old
adage "If it sounds too good to be true, it is neither good nor true". Well it
was too good to be true and now two years after the original investment, it
appears the entire $100,000 was lost. A visit to the Orlando company early this
year by the elderly gentleman found the fancy high rise office closed and the
business relocated to a dilapidated house. Seniors vs Crime did find out that the money lost in this case probably was packaged with other victims' savings and sent to a European bank. After laundering, the "investment monies" were returned to an account in another bank in south Florida. The other revelation was that no real investments had been made in this large, complicated Ponzi scheme. Both the Florida Department of Financial Services and the U.S. Secret Service were contacted on behalf of our client. So far no money has been recovered.
To avoid becoming a victim of a Ponzi
scheme such as the one described here, make sure your financial investments are
made with a licensed and registered
broker. Do not participate in any business investment that offers completely
unrealistic returns. The example we
cited promised a return of almost 50% after only one week and over 100% after
one month. If you are told you can make even more money by reinvesting the
interest you earn, that should raise a red flag. If the business
investment involves a new product, ask yourself why a major company is
not already selling the product if it is such a great idea.
Be sure to check out any company or
investment you are considering with the Better Business Bureau at (904) 721-2288
or through their website: www.bbb.nefla.org.
You may contact our office for assistance if you suspect you are being offered a
fraudulent investment opportunity. Finally, do not be reluctant to report a
fraud you may have been a victim of since you may save someone else from making
the same mistake. Barry Hertslet, Manager Fernandina Beach Contact Information
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"The Seniors vs. Crime Project does not offer or provide legal services or legal representation. Any response provided is not legal advice, is not a definite statement of the law, and is not a complete analysis of this area of inquiry." Send mail to
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