Affinity Ponzi Schemes-Are You a Possible Target?

By: DFree | June 12, 2010 | Illegal Schemes & Scams

One way that ponzi scheme operators (aka slimeballs) operate is to prey on people they have close affiliations with. Some of the most commonly targeted groups include religious or community-based groups and the elderly. The con-artist will gain the trust of respected leaders within the affinity group (e.g., religious leaders) to help spread the message to others about the investment scam. Unfortunately, the unsuspecting leaders who help spread the word have no idea that the investments are fraudulent and themselves become unwitting victims of the con-artist’s grand plan.

Don’t fall victim to one of these types of scams. Never entrust your money to someone simply because you like them. Get documented information about who you’re working with and make sure they are legitimate. Here are some red flags that you should be aware of before you take a leap of faith with your money.

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Investor Watch Dog is a weblog designed to inform investors about hidden risks when they invest assets based on the recommendations of financial planners, financial advisors, money managers, insurance agents, and investment sales representatives. Some of Wall Street's biggest investment risks result from Ponzi Schemes, investment bubbles, conflicts of interest, bad advice in bear markets, lobbyist activities that promote industry interests, bad investment products, and anti-investor business practices. While some of these risks are worthy of front page headlines, millions of investors assets are much more frequently exposed to less newsworthy but exponentially more harmful investment scams, financial fraud, illegal investment products, bad financial advice, bad investment recommendations, misrepresentation, omission, abuse of trust, deceptive sales practices, and breach of fiduciary duties. The role of Investor Watch Dog is to shine a spotlight on legal and illegal business practices that undermine the financial interests of investors, retirees, business owners, professionals, executives, and other types of consumers who rely on Wall Street and its financial professionals for the advice and services they need to achieve their financial goals.