New FBI Video on Ponzi Schemes

The Utah office of the FBI just released a video about Ponzi schemes, affinity fraud, and how to spot trouble. The video, which was produced by the FBI Salt Lake City Division, features interviews with FBI Special Agent in Charge James S. McTighe, Security and Exchange Commission Regional Director Ken Israel, Utah Division of Securities Director Keith Woodwell, and an investor who explains how affinity fraud cost her thousands of dollars.  Here is a link to the Video.  A Deseret News article on the creation of the new “Utah Securities Fraud Task Force” is here.

GREAT NEW AD CAMPAIGN

The Utah Division of Securities has put together a great new campaign to combat affinity fraud that I just saw on a billboard near my home:

The monies that the Division collects from fines are supposed to fund investor education, and past efforts to do this have been mediocre at best.  I think this is a nice new approach.

KNOW YOUR FRENEMIES

As part of the buildup for the Utah Fraud College event a great article entitled Know Your Frenemy appeared in Utah CEO Magazine yesterday.   This is somewhat unique because unlike most of the educational efforts that target individuals, this article focuses on the harm that can come to businesses from fraud:

“Companies strive to build a trusted name and brand, and according to Hill, that sort of trust is just what perpetrators are looking to exploit. “You need a community of trusted friends in order to have affinity fraud,” he says. “All the things that make for a good community also make for affinity fraud.”
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