Labor & Employment Law

Fraudsters Pray With Their Victims, Then Prey on Them

By Dobin & Jenks

Yet another financial fraud has been unearthed as part of the bloodletting of 2008/2009. As reported in Investment News, seven members of a church in Queens, New York, defrauded fellow church-goers of more than $12 million. The accused fraudsters were leaders in the church.

The formula does not appear to be different than any other. The fraudsters were trusted, pillars of the community. The promised high returns, some as high as 75% according to the article. In the end, it turned out they were doing what all Ponzi scheme artists do, they funded their "lavish lifestyle."

It's interesting that the investors in these schemes never seem to notice that, in spite of the promise of unrealistically high returns, the promoters are living well. Perhaps they rationalize in their own minds that the promoters are doing so well with their own investments that they can live well and make all their investors rich.

Get with the program people!!!! If these guys were so smart, they wouldn't be marketing only to members of their church and their lavish lifestyle would include owning Manhattan. Folks have forgotten the basic rule. If it sounds too good to be true, it is. Stay away.

Full post as published by The Law Planet Blog on April 20, 2009 (boomark / email).