WALNUT CREEK (CBS 5) — The U.S. Department of Justice is warning seniors to watch out for investment fraud schemes. According to the agency, it’s a type of crime that is surging as a result of the recession.
On Tuesday, U.S. Attorneys from all over California held an Investor Fraud Summit at the Rossmoor retirement community in the East Bay. The aim was to educate seniors about the different types of financial scams.
Jim and Shirley Patterson fell for one of the more popular scams. The couple said friends of theirs promised them they could earn 10 percent interest on an insurance policy offered by the California BAR Association. The Patterson’s said they invested $300,000 and lost almost all of it.
KCBS’ Dave Padilla Reports:
Promises of high interest rates are just one warning sign. The Department of Justice said other red flags are so-called “guarantees” that your investment is safe, and when the person offering you the deal tells you it is “confidential.”
“Some of the best deals are the deals that you don’t make,” U.S. Attorney Melinda Haag said.
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