Affinity Fraud

The term affinity fraud refers to investment scams which target certain groups, and where the fraudster perpetrating the scam poses as a member of that group. Targeted groups generally include those organized around a faith, culture, occupation, or even charity. The fraud uses a fake investment, or a lack of information or full disclosure about an existing investment, such as the history of the investment promoter, the true history of performance of the investment, or the true risk of loss inherent in the investment. The schemes typically tend to be Ponzi schemes or pyramid schemes which appear successful, and give investors a false sense of security.

Ponzi Schemes and Affinity Fraud

At The Law Offices of Jonathan W. Evans & Associates, we want our clients and the public at large to be aware of these fraudulent investment schemes, and to know what to look for in order to avoid being drawn in to the schemes. The single most distinguishing factor of the affinity fraud scheme is that the person suggesting or promoting you money into the will be someone that you know. He or she may be a broker, or just someone who has already been drawn into the scheme by another person. Often, these schemes involve newcomers to the investment field, and may be someone who has switched careers to begin selling insurance or other investments.

Because of the close relationship with these promoters, many are afraid to say anything when the investment begins to reveal itself as false. Victims tend to believe their acquaintance and will hold out hope for a turnaround of the situation. By the time victims reach out to a professional for help it is usually too late, and the investment is either lost, or seized by the authorities when the scheme is discovered and prosecuted.

If you or someone you know wants to learn more about affinity fraud, or if you believe you may have been a victim, please call our offices today for a free evaluation. We are here to help. Contact us today.