Here is a roundup of alleged cons, frauds and schemes to watch out for:
Investment advice -– In his new book, “The Vigilant Investor,” former Securities (Securities: The state of being free from danger or threat ... The safety of a state or organization against criminal activity such as terrorism, theft, or espionage) and Exchange Commission (Commission: The authority to perform a task or certain duties ... An instruction, command, or duty given to a person or group of people) attorney Pat Huddleston (Huddleston: Huddleston is a surname, and may refer to: * Amelia Edith Huddleston Barr * Adam Thomas Huddleston * David Huddleston * George Huddleston * George Huddleston, Jr. ...) offers a list of tips to help investors avoid Ponzi schemes and other scams. Among them:
– Check with state regulators (regulators: A person or thing that regulates something, in particular ... A person or body that supervises a particular industry or business activity) to make sure the salesperson (salesperson: A salesman or saleswoman (used as a neutral alternative) ... a person employed to represent a business and to sell its merchandise (as to customers in a store or to customers who are visited)) is properly licensed. If the person is not licensed, it’s probably a fraud.
– Check federal court records (available for a fee through www.pacer.gov) to see if your investment broker has been sued or criminally (criminally: in a shameful manner; ... in violation of the law; in a criminal manner;) prosecuted.
– Don’t be blinded by celebrity power. Avoid investing with people who like to drop names.
– Avoid high-pressure sales pitches. Anyone who pressures you to invest does not have your best interests in mind.
Fake website -– Kelley Blue Book, which provides information (information: Facts provided or learned about something or someone ... A formal criminal charge lodged with a court or magistrate by a prosecutor without the aid of a grand jury) on new and used cars, is warning online car buyers to be wary of a scam utilizing a website that uses its name without authorization. The Irvine company warned that the website solicits funds from car buyers by offering an escrow-based buyer-protection program that Kelley Blue Book does not offer. Buyers are told to wire payments to a third party, which absconds with the victims’ money, Kelley Blue Book said in a news release. The company said it is working to have the website removed. In the meantime, car buyers should be aware that Kelley Blue Book does not offer such a service.
Ponzi scheme -– A man who operated a Ponzi scheme that targeted Korean Americans throughout (throughout: All the way through, in particular ... In every part of (a place or object)) California (California: A state in the western US, on the coast of the Pacific Ocean; pop. 33,871,648; capital, Sacramento; statehood, Sept. 9, 1850 (31). Formerly part of Mexico, it was ceded to the US in 1847, having briefly been an independent republic. Large numbers of settlers were attracted to emCalifornia/em in the 19th century, esp. during the gold rushes of the 1840s; it is now the most populous state ... (california) a state in the western United States on the Pacific; the 3rd largest state; known for earthquakes) has been sentenced to more than six years in prison. Euirang “Chris” Hwang had pleaded guilty in 2010 to charges that he collected about $8.5 million from 65 victims through a company called Pinupito in Irvine. He promised investors returns of up to 45% per year, saying he made huge profits by buying and selling small companies in Korea. But rather than using the money for such purposes, he used it to pay returns to early investors and on personal expenses, including leasing expensive cars, the U.S. attorney’s office said in a news release. In addition to the prison sentence, Hwang was ordered to pay more than $7 million in restitution to victims.
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– Stuart Pfeifer
Photo: The 2008 Honda Accord was one of the most-searched used cars on Kelley Blue Book’s website. Credit: Honda
