Scams

Washington, D.C., May 14, 2008 — The Securities and Exchange Commission today filed securities fraud charges against the promoters of an $18 million real estate investment scheme targeting the African-American community in the Los Angeles area and other locations in Nevada and Georgia.    » read more »

Forum Trading, Inc. claims devices will lower electric bills, extend household appliance life

May 14, 2008 -- AUSTIN – Texas Attorney General Greg Abbott obtained a temporary restraining order and limited asset freeze Monday against Forum Trading, Inc.

Fake power saver products: Photo courtesy Texas AG

The state’s legal enforcement action charges the Texas-based company, which is organized as a multi-level marketing scheme with independent distributors, with marketing energy devices it falsely claims will significantly reduce power consumption, extend the life of household appliances and save consumers money.    » read more »

May 13, 2008 -- LANSING – The U.S. Securities and Exchange Commission (SEC) recently announced that with the assistance of the Office of Financial and Insurance Regulation (OFIR), the federal agency obtained an emergency court order freezing the assets of Gregory N. McKnight of Swartz Creek, MI, an alleged perpetrator, of an Internet fraud scheme that reaped approximately $72 million from more than 3,000 investors in all 50 states and at least 30 foreign countries.    » read more »

Bright Pages to refund up to $3 million to defrauded customers, reform business practices and pay $150,000 penalty

NEW YORK, N.Y. (May 12, 2008) - New York Attorney General Andrew M. Cuomo today announced a settlement agreement with a national online directory service for defrauding thousands of small businesses and not-for-profits across New York state and the nation.

Under the terms of the court-ordered settlement, the company will pay a $150,000 penalty and up to $3 million in restitution to defrauded customers.    » read more »

May 12, 2008 -- JEFFERSON CITY – As Southwest Missourians begin to recover from the powerful storms that ripped through their communities over the weekend, Missouri Governor Matt Blunt encourages residents to be wary of scammers seeking to profit from mother nature’s destruction.

“Unfortunately, scammers see disasters as prime opportunities to take advantage of those most in need of help,” Gov. Blunt said. “I urge Missourians to take caution and research any home repair company that shows up at their doorstep as they work through the insurance claims process. Missourians can avoid scam artists by working with reputable, local businesses rather than fly-by-night companies.”    » read more »

May 9, 2008 -- NEWARK – Con artists attempting to steal personal information are contacting New Jersey residents and falsely stating that bank account and/or social security numbers must be provided to them in order for economic stimulus checks to be sent to consumers.

Acting Consumer Affairs Director Larry DeMarzo warned residents to be aware of this scam and to not provide any personal information to callers who claim to be U.S. Treasury or I.R.S. officials or to respond to such emails.    » read more »

May 7, 2008 -- Las Vegas, NV -- Nevada Attorney General Catherine Cortez Masto announced today that District Court Judge Kathy Hardcastle has sentenced Mitchell Adam Chirchick, 40, of Las Vegas, in connection with the sale of bogus travel packages to the NFL’s 2007 Pro Bowl in Honolulu, Hawaii.

Pro Bowl kickoff rally, Hawaii: Photo by Zach Everson (CC)

Chirchick, who pled guilty to three counts of Felony Theft of Property in Excess of $2,500, was sentenced to consecutive terms of 4 to 10 years on Counts One and Two.    » read more »

May 7, 2008 -- Jefferson City, Mo. - Missouri Attorney General Jay Nixon says Missourians are receiving letters in the mail offering mortgage insurance, refinancing and other services. He says while many of those solicitations are designed to look like they come from a consumer's mortgage lender, they actually come from a separate, unrelated company.    » read more »

Reverse mortgage company portrayed itself as community-based non-profit to mislead seniors into reverse mortgage product; Attorney General Cuomo urges homeowners to be informed when exploring refinancing options

SYRACUSE, N.Y. (April 24, 2008) – New York Attorney General Andrew M. Cuomo today announced his office has stopped a Syracuse-area reverse mortgage lender from preying on seniors statewide through false advertising and portraying itself to be a local non-profit organization.

Elderly woman: Photo by borya (CC)    » read more »

April 21, 2008 -- SEATTLE – Approximately 200 Washington consumers who paid for a service that they thought would help save their homes from foreclosure will receive partial refunds under a new settlement announced today by the Washington Attorney General’s Office.

The homeowners each paid $1,200-$1,500 to Foreclosure Assistance Solutions LLC, of Clearwater, Fla. More than 70 percent of homeowners who signed up with Foreclosure Assistance Solutions ended up losing their homes anyway. The company went out of business in fall 2007.    » read more »

April 18, 2008 -- HARRISBURG - Pennsylvania Attorney General Tom Corbett urged consumers to be alert for scam and "spam" text messages on their personal cell phones and urged consumers to never divulge personal information in response to an unsolicited text message.

Cellphone messages: Photo by Juli (CC)

Corbett explained that the Attorney General's Bureau of Consumer Protection has been receiving a steadily increasing number of complaints about unwanted cell phone text messages - primarily involving advertisements for prescription drugs and pornography.    » read more »

April 11, 2008 -- Chicago – Illinois Attorney General Lisa Madigan and Illinois Secretary of State Jesse White today announced the conviction of a Chicago man for loan fraud in a cross-country scheme.

Following a six-day trial in Cook County Circuit Court, the jury took less than two hours to convict Robert L. Schillaci, 69, on two counts of acting as a loan broker without registration and two counts of fraud by a loan broker.

A prison in Chicago, Illinois: Photo by David Jalbert-Gagnier (CC)    » read more »

April 7, 2008 -- WASHINGTON, DC-Today, U.S. Senator Bob Casey (D-PA) introduced an amendment to the Truth in Lending Act to combat mortgage fraud and prevent “house flipping schemes.” The amendment, introduced with the support of Senator Mel Martinez (R-FL), would require a second independent appraisal for high-risk, high interest mortgages.

“A disturbing byproduct of the increased rates of foreclosures is unscrupulous individuals trying to profit from other people’s losses,” said Senator Casey. “Stopping these flipping schemes will help give confidence to those buying homes that appraisals on their new homes are accurate and won’t come back to haunt them later.”    » read more »

April 8, 2008 -- Jackson, MS - Missouri Attorney General Jim Hood warns residents that the damage caused by the recent storms is likely to result in an increase in home repair fraud in central Mississippi.

“We have investigators riding around in storm damaged neighborhoods handing out example home repair contracts and making photographs of license plates and company information off home repair vehicles in the area,” said Attorney General Jim Hood. “We observed five out-of- state tree pruning vehicles at one hotel last night.”

Missouri ice storm damage: Photo by Carol Von Canon (CC)    » read more »

Scams are evolving to look more “official,” often appearing to be government documents

April 3, 2008 -- TALLAHASSEE, FL – Florida Attorney General Bill McCollum today issued a consumer advisory warning Floridians about evolving email and internet scams, particularly those which solicit assistance in moving large sums of money through wire transfers or bank deposits.

The Attorney General cautioned that as technology develops, con artists are becoming more adept at using the internet to prey on their victims, hiding behind the internet’s anonymity while offering business opportunities that cannot be passed up or stories begging for a recipient’s compassion.    » read more »