There Is No Free Lunch!
This investment scam is a real “winner”, (and I sure don’t mean this in a good way!).
This particular scam not only involves your hard earned money, but can also involve identity theft.
- These scam alerts are huge. Investors are offered “free lunches”
at a seminar that very often have really wonderful food, but here’s the
- These lunches use high pressure, scare tactics from “experts” in senior investments.
Arm yourself with more knowledge at identity theft scams.
poor investor will never want to eat again when they come to the
conclusion that their “high-yield, no-risk” investment was neither and
they have become a victim of a scam.
- friend called Tim that lost over $300,000.00 in an investment scam a few years ago.
- Tim was only one of 20 older people tricked out of a total of over $2 million dollars.
Tim was hoping to retire, but of course, that was not about to happen now.
- At this point and time Tim’s only received $25.00 through court ordered restitution.
common pitch used by these scammers is, “you need to buy this item, or
product, because if you don’t the government will take all your money
and you’ll be eating cat food for the rest of your life”.
- Investments aren’t for everyone, but at the worst, they are out-and-out scams.
all seminars try to trick their participants, but most are sales
presentations even if they claim they are an “educational workshop”.
They will also state nothing will be sold.
120 firms investigated by the federal Securities and Exchange
Commission (SEC), over half made misleading or exaggerated claims.
in four pitched investments, such as; high-commission investments or
annuities were very unsuitable for the retirees and others over the age
of 60 that were the majority of the audience.
- Approximately 13 to 14% of these pitches appear to be an outright investment scam.
Many times the participants are recruited through civic or church organizations and newspaper ads.
The victims thought to have a good size nest egg are sent invitations to these events.
There is a real risk in going to any of these “free meal” workshops or seminars. There is Always a catch.
- AARP has been giving scam warnings and holding workshops concerning this vicious investment scam.
securities director for Michigan’s Office of Financial and Insurance
Services was told by a woman that had attended one of these workshops
that she was able to halt a $50,000 investment before the check was able
to clear the bank.
- Another case, a man changed
his mind about making a $1 million dollar investment when he became
aware that the presenter he had met at another seminar was neither
qualified or registered as an investment specialist.
Go to types of identity theft to arm yourself with the knowledge you need to prevent yourself from becoming a victim.
Investment Scam Tips
- Be very leery of these “new” hot investments such as hedge funds and the now popular alternative energy sources.
- Always check out the presenter’s credentials at your state securities and regulatory agency.
- For a state list from the North American Securities Administrators Association, go to nasaa.org.
- Make sure you ask all the right questions before investing any money. You can also go to sec.gov/investor/pubs/askquestions.htm.
- The older I’ve become the more skeptical I’ve become about what I hear.
that are able to invest need to be skeptical and investigate what they
hear before they throw away their hard earned money on something that
turns out to be a scam and you become the victim.
many veterans, nursing homes, community centers and assisted living
facilities are a target for these scammers who will con seniors by
saying that for additional benefits they can get you instant eligibility
through a quick overhaul of all your investments.
These people are Not for the veteran, they are investment advisor crooks.
crook will say they will make you eligible for Department of Veterans
Affairs pensions and many other benefits if you purchase financial
products through them.
Recently, a task force was formed to help combat this scam which is growing in such large proportions against our vets.
cons get a veteran to transfer their retirement into an irrevocable
trust. This makes the family appear to be broke or destitute.
doing this, it helps meet the eligibility requirements for related
programs and VA pensions such as Aid and Attendance, which will pay
additional benefits to a vet who needs assistance with everyday living.
- The vet will be told the VA does not go back and examine veterans’ history of assets to determine eligibility for their pension.
- Even if the VA doesn’t look back on the records, Medicare Does!
- If Medicare notices you have transferred the assets in this manner, your eligibility for those benefits could be put at risk.
investment scam here is the fact that the new trust usually contains
long-term investments and annuities that, for retirees, are considered
- Before many of these annuities can pay out a monthly income, they have to be held for at least a decade or longer.
- Scammers don’t care if this is good for you or not; that is not their concern.
con is going to receive a huge sales commission of approximately
$75,000 if they can scam you into purchasing a $500,000 annuity. Talk About Elder Abuse!
- Do Not
depend on the community center, assisted living facilities and nursing
homes to protect you. Often they let volunteers give presentations
because they pay the facility a fee.
- Many times these organizations are not even aware of this type of investment scam.
- Contact your state veterans affairs agency at nasdva.net to get credible information on how to qualify for veterans benefits.
See ebook reader for another new area that crooks have hit in a big way.
investment scam checkups, go to nasaa.org or,
sec.gov/investor/seniors.shtml and click on “Senior Investor Resource
Center” for the knowledge you need to protect yourself
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