Ponzi Schemes

Unregistered securities schemes usually have certain common attributes. In almost every instance they promise complete protection of your investment along with a large fixed rate of return payable on a monthly basis. In most instances, investor “interest payments” are made using money paid by other subsequent investors. Promoters and agents of unregistered securities schemes will usually target retirees and unsophisticated investors. Unregistered securities schemes are often referred to as Ponzi or Pyramid Schemes .

Investor Tip: Many people, especially otherwise cautious people, are victimized by affinity fraud. Affinity fraud occurs when promoter of an unregistered securities scheme will use his affiliation with a certain ethnic or religious group in order gain the trust of his potential victim.

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