Crackdown On Investment Scam

Tips For Avoiding Scams

Jan. 25, 2001-- Reported by News Specialist Jill Atwood

The U.S. Attorney's office announces a major crack down on an investment scam.

Investigators say investors have already lost millions of dollars, and more victims will follow if Utahns don't read between the lines.

A federal grand jury handed down three indictments charging nine people with defrauding investors and the federal government.

Five are charged with operation of an abusive trust scheme, four others for running an investment scam.

Thursday, the U.S. Attorney's office warned the public--don't be fooled.

On the investment scam, they entice would-be investors with the words "sure thing."

They promise extreme monthly returns with low risks. And in many cases, life savings have been cleaned out.

They prey on the elderly, but reputable professionals have also been victimized. Here in Utah dozens have been sucked in--far too many, according to the U.S. Attorney for Utah.

He says Utahns are far too trusting.

Paul Warner/United States Attorney for Utah: "Somehow our citizens really aren't getting the message. We see promises of high returns with no risk. Ladies and gentlemen, common sense should tell all of us that's just not a reality in today's world."

There are some definite red flags to watch out for if you're approached with one of these "sure thing" investment opportunities.

Red Flags
• High yields, low risk. With any investment there is risk.

• Guaranteed extreme monthly returns. There is no guarantee when it comes to investments. Returns are only proportionate to what you put in.

• Finally, it's only available to a select few, or not many people know about it. It's a secret club.