Scams Aimed at Struggling Households on the Rise

Monday, 27 Dec 2010 03:07 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Americans burdened by debt, lost income, and poor credit are increasingly falling for scams that promise vast sums or financial relief in exchange for a hefty upfront payment, The Wall Street Journal reports. The Justice Department is making these “advance-fee” investment cons a high priority as they flourish in tough economic times.

In a typical case, one convicted swindler recently was indicted in Phoenix for collecting advance fees of several hundred thousand dollars from business people who were promised bigger returns from a phony investment trust.

In another case, a Los Angeles-area man is awaiting trial on charges that he cheated distressed homeowners out of thousands of dollars each on the false promise that he would stop their home foreclosures.

“We have victims who normally wouldn’t have been sucked into such a scheme,” said a prosecutor in the Los Angeles area case. “But they were facing eviction.”

In November, the Federal Trade Commission banned mortgage-relief companies from collecting a fee until after a homeowner receives a fair loan-modification offer from a lender.

Consumer complaints related to both advance-fee and credit-repair schemes more than doubled from 2008 to 2009, from 17,000 to 41,000, the FTC says.








© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Parents of SEAL Hero Demand Obama Quit Over ISIS Threat

Tuesday, 02 Sep 2014 09:57 AM

The parents of a SEAL Team 6 member who died in Afghanistan have called on President Barack Obama to resign, saying tha . . .

Politico Founder to be Washington Post Publisher

Tuesday, 02 Sep 2014 09:50 AM

Katharine Weymouth is stepping down as publisher of The Washington Post and will be replaced by Frederick Ryan, who prev . . .

Dozens of Teens Escape from Nashville Detention Center

Tuesday, 02 Sep 2014 09:30 AM

Thirty-two teens escaped from a Nashville youth detention center by crawling through a weak spot in a fence late Monday, . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved