Sadly, folks who watch CNBC, Fox Business, and Bloomberg TV and shake their heads in disgust at stories about alleged misconduct at Goldman Sachs, JP Morgan, Merrill Lynch, Wells Fargo, UBS, Morgan Stanley Smith Barney and other household names on Wall Street, will toss all caution aside when it comes to a fraudster from their native land, who sounds like them, looks like them, or prays at their same house of worship. After their savings have been wiped out, the usual explanation for why such victims let their guard down is: He was one of us.
You may have thought that you were all worshipping together, but in reality, it wasn't about praying but preying.
Recent regulatory and criminal investigations have disclosed widespread affinity fraud that is targeting so-called affinity groups. Many of the promises upon which the bogus pitches are made fall within the realm of too-good-to-be-true and the due diligence undertaken by those victimized is either nonexistent or lackadaisical. The lack of meaningful investor inquiry and investigation of representations made in connection with investments was recently covered in "Street Sweeper's" Wall Street Eugenics : SEC Charges Microcap Fraud . . . again, and I urge all of you to re-read that controversial column.
Below, find a sample of my recent online commentaries about affinity fraud. Use the painful lessons learned by many fleeced investors to protect your savings. Pass these articles on to those you know who have been approached by purported members of their community with promises of overblown returns.
- SEC Persian Jewish Affinity Fraud Case Is Not A New Bravo TV Series (Persian Jewish)
- SEC Alleges That Social Capitalist Ripped Off Churchgoers With Ponzi Scam (African American, Christians)
- Feds Say Fugitive Day Trader Ran Ponzi Scheme On Gay Community (Gays)
- Tenacious D and the Battle of Christian Rock Bands' Ponzi Fraud (Evangelical Christians)
- UPDATE: God Makes Wind, The Apostles Market It, And James Rivera Sells It (Evangelical Christians)
- Diamond Dust: Prominent Cuban-American Florida Jeweler Named in Affinity-Fraud Ponzi Scheme (Hispanics)
- SEC Charges Unregistered Brokers From Unregistered Firm Sold Fictitious Securities in Affinity Scam (Caribbean, African-American)