Last year the FBI labeled Utah as one of its top 5 states for Ponzi (pyramid) schemes. Now a new study confirms that Utah is #5 in the nation on the "Ponzi Prosperity Index."
Ponzi schemes promise outrageous investment returns and use money from new investors to pay the initial investors who brag to their friends and family to suck them into the scheme. Does no one remember Bernie Madeoff and his promises of guaranteed, safe returns?? No investment return is guaranteed. The new study shows that religious group members are Ponzi targets about 30% of he time (based on trust of religious leaders and co-worshipers). The elderly and retired people are also prime targets (because that's where the money is).
For at least the past 3 decades The Salt Lake Tribune has been published articles about "affinity group" investment fraud and today's (June 29) paper reminds readers to be very wary of unrealistic promises of safe, high investment returns. Keith Woodwell, director of the Utah Division of Securities is quoted in the article, "I would say it is probably closer to 50 percent of the scams we see in Utah that are marketed based on some type of affinity group." Be skeptical and help educate your friends and family (particularly seniors) about Ponzi schemes and affinity fraud.
Read the details at: http://www.sltrib.com/sltrib/money/52091892-79/ponzi-utah-state-fraud.html.csp
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