Scams Aimed at Struggling Households on the Rise

Monday, 27 Dec 2010 03:07 PM

  Comment  |
   Contact  |
  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.

  Comment  |
   Contact  |
  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:
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

US Crude Plunges 10% in Biggest One-Day Drop Since 2009

Friday, 28 Nov 2014 21:41 PM

U.S. crude tumbled 10 percent in its biggest one-day drop in more than five years on Friday, and benchmark Brent broke b . . .

National Protests Over Ferguson Briefly Close Malls, Shut Down Trains

Friday, 28 Nov 2014 21:20 PM

Demonstrators temporarily shut down two large malls in suburban St. Louis on one of the busiest shopping days of the yea . . .

Next Partisan 'War' in New Congress Will Be Over Science

Friday, 28 Nov 2014 19:58 PM

After midterm battles, an immigration standoff and amid a switch of power in Congress, the next political fight in Washi . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

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