Would you invest your money in a deal, that promises to double that investment every 30 days? Or, would you think it sounds too good to be true? The truth is it is--too good to be true! And it's the latest scam to hit Salt Lake City and Utah. Crime Specialist Karen Schaler has the story.
What's hard to believe is dozens of Utahns have already fallen victim to this scam. The minimum buy-in is a million dollars, so when you loose your money on this one, you REALLY loose!
A new scam is keeping this Utah securities office extremely busy right now. It's the latest way thieves are trying to steal YOUR money.
Michael Hines/Utah Div. of securities: "WE'RE SEEING A NEW BREED OF FRAUD OVER THE LAST COUPLE OF YEARS. THIS YEAR WE'VE HAD AN ABSOLUTE RUN ON FRAUDS DEALING WITH OFF-SHORE TRADING PROGRAMS."
This is how the off shore trading scam works. Someone calls you and asks you to invest up to a million dollars. That money goes to the scam artist who then invests it in a certificate of deposit, telling you there's no risk with a C.D.
But then your C.D. is used as collateral overseas--and you never see your money again.
Michael Hines/Utah Div.of Securities: "INVESTORS FEEL SAFE BECAUSE THERE'S A C.D. BUT THEY IGNORE THE FACT THAT THE C.D. IS PLEDGED OFF SHORE AND THEY DON'T HAVE CONTROL OF THE C.D."
Investors are given a certificate promising they'll double their investment in 30 days. But detectives say the money NEVER comes in.
"I RAN INTO MY FIRST OFF SHORE TRADING PROGRAM IN 1981 AND I HAVEN'T SEEN ONE THAT'S WORKED YET, OR A DEFENSE ATTORNEY THAT CAN PROVE ONE HAS EVER WORKED."
Right now, Utah securities people are working with investigators in Texas. Apparently a company outside Houston is making kits that explain how to set up this fraud, and then selling those kits in Utah.
"THERE'S A PLACE YOU CAN BUY A KIT TO COMMIT THIS FRAUD AND IT GIVES YOU ALL THE DOCUMENTS YOU NEED AND YOU CAN THEN JUST PUT TOGETHER THE FRAUD WITH THIS KIT."
Some of these scams are also starting to show up on the internet. So before you invest in any deal that promises great returns, call Utah's Division of Securities office at (801) 530-6600. Investigators there will check out what's happening and tell you if it's a scam.