The Latest Scams Circulating the Consumer World. Be warned. Be informed.
June 2008
Mortgage Rescue Scams
The rising number of foreclosures in The United States has inspired criminals to put a new twist on an old scam. Consider these facts:
- Real estate prices are 14% lower than prices were one year ago.
- 1/4 of the homes sold in 2008 were distressed or foreclosed properties.
Source: NPR
The Pitch
You have a "virtually risk-free" investment opportunity that will help save the homes of people who are facing foreclosure. Your investment will yield a 50% return in a mere 6 weeks and go towards a good cause.
The Scam
 The scam was pitched by the Accelerated Funding Group, and while they operated under the guise of a mortgage rescue operation, they were nothing more than a Ponzi scheme company. They lied to investors and told them that their money would be helping people avoid foreclosure. In actuality, the only people the money was helping were the criminals.
Early investors were paid back with money from investors later on in the scheme. There was no real investment activity going on at all, yet people invested over $18 million dollars into this scam. The investors at the tail-end of the Ponzi scheme lost their entire investment!
Rest-assured that justice has been served. The owner of the Accelerated Funding Group was arrested for running the Ponzi scheme in the states if California, Nevada and Georgia.
Although this person is behind bars, similair scams exist under different company names all over The United States.
Play it Safe
- A 50% return in 6 weeks is usually too good to be true. Don't believe hyped-up investment figures like this one.
- Be weary of investment opportunities even if people you know, trust, and love present them to you. They may not that they're involved in a scam!
- Never make a quick investment decision. Take some time to research the company and think about the financial impact of your choice.
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