Utah Division of Securities
1. Ponzi Schemes2. Unlicensed Individuals Selling Securities3. Unregistered Investment Products4. Promissory Notes5. Senior Investment Fraud6. High-Yield Investment Schemes7. Internet Fraud8. Affinity Fraud9. Variable Annuity Sales Practices10. Oil and Gas Scams
Utah Division of Securities
Common Threads
• Promise of High Returns
• Promise of Little or No Risk
• Prey on Investors’ Trust
• Investors Don’t Ask Questions
Utah Division of Securities
Senior Investment Fraud• Often Claim to be “Senior Specialists”
•Certified Elder Planning Specialists (The National Registry of Elder Planning Advisors)
•Senior Benefit Centers Network •Senior Financial Survival Workshop•Certified Senior Advisors
• Sundance Public Relations•Ghost Written Books – Alligator Proofing
Your Estate•Newsletters & Brochures – Senior Times
Utah Division of Securities
• Use Introductory Seminars
• Offer Free Meal
• “Probe, Then Disturb, Then Enhance the Problem”
Annuity University
Wall Street Journal July 2, 2002
Utah Division of Securities
• “You’re there to solve their problems, but you have to create those problems first – No Problem, No Sale”
• “Tell them you can protect their life savings from nursing-home and Medicare seizure of assets. They don’t know what that is, but it sounds scary…it’s about putting a pitchfork in their chest.”
• “Show them their finances are all screwed up so that they think Oh, no! I’ve done it all wrong – this will make you money”
Annuity University
Wall Street Journal July 2, 2002
Utah Division of Securities
Why Seniors Are Targeted
• Home to Answer the Phone or the Door
• Own Home Free and Clear• Have Money From Working & Saving
For So Many Years• Increased Reliance on Others• Home Alone
Utah Division of Securities
Remember: You may have more money and equity, but you also have more to lose because you don’t have the time or means to recapture your losses.
Utah Division of Securities
How to Spot a Con Artist• Con Artists Like to Blend In
• Disguise True Motives • Con Artists Dress for Success
• Dress Like They are Wealthy• Impressive Looking Office• Prestigious Sounding Address
• Con Artists Bring Out the Worst in You • Greed, Fear, Insecurity, etc.
• Con Artists Are Fair Weather Friends
Utah Division of Securities
Ten Tips To Protect Your Nest Egg
1. Don’t Be A Courtesy Victim
2. Check Out Strangers Touting Strange Deals
3. Always Stay in Charge of Your Money
4. Don’t Judge a Book by Its Cover
5. Watch Out for Salespeople Who Prey on Your Fears
6. Don’t Make a Tragedy Worse with Rash Financial Decisions
Utah Division of Securities
Ten Tips to Protect Your Nest Egg
7. Monitor Your Investments and Ask Tough Questions
8. Look for Trouble Retrieving Your Principal or Cashing Out Profits
9. Don’t Let Embarrassment or Fear Keep You From Reporting Investment Fraud or Abuse
10. Beware of “Reload” Scams
Utah Division of Securities
What Can You Do?• Ask Questions – Be an Informed Investor
• Get Everything in Writing and Keep a Copy of All Documents
• Risk No More Than You Can Afford to Lose
• If You Don’t Understand the Investment - Avoid It!!!
• Don’t Be Afraid to Hang Up the Phone
Utah Division of Securities
What Can You Do?
• If It Sounds Too Good to Be True – It Probably Is!
• Contact the Division of Securities:
• To See if the Individual Selling the Investment is Licensed
• To See if the Investment is Registered
• To Obtain Additional Information on the Individual and/or Firm
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