THE MESSAGE:

Scammers abound! Consider the efforts of Telemarketers, Pharmaceutical TV ads,
Ponzi schemers, etc...

I can't count the number of letters received from Nigerian scammers. These guys always promise you millions of dollars for being their partner in recovering government seized money from a made up relative . The only thing they ask of you is to send them your bank credentials and contact people.

The number of lazy bastards trying to con elderly or gullible souls out of their money is staggering. Today's internet and other technologies make it somewhat easy to find such victims.

THE BLOG:

SPEAKING OF PONZI SCHEMES:

Charles Ponzi was the man who started it all. In the 1920’s, Ponzi promised investors a 50% return in 45 days, or 100% in 90 days. His bait was international postal coupons, which he never actually purchased. He became a millionaire in only six months earning some $15 million When he was arrested one year later, his victims received a return of only $5 million. Ponzi was charged with 86 counts of mail fraud and sentenced to 5 years in jail.

Lou Pearlman was one of the hottest music producers in the 90’s, having worked with ‘Nsync, and The Backstreet Boys. As a rather lucrative sideline Pearlman also produced one of the biggest, $300M, and longest-running Ponzi schemes in US history. For over 20 years, Pearlman convinced individuals and corporations to invest in two companies that only existed on paper. He also created fake financial statements to secure bank loans. In 2008, Pearlman was convicted of money laundering, conspiracy and making false statements during a bankruptcy proceeding. He was sentenced to 25 years in prison.

Gary Gauthier hosted a radio show called, It’s God’s Money, in Tampa. He bilked 38 senior citizens of $6M. He promised his victims an 8%-40% return on investments in real estate. Gauthier lured his victims by telling listeners to call him, and set up a personal meeting at their homes or at his office. The scheme lasted from 2005-2010. To increase his legitimacy, some investors would call into the radio show and rave about how they got rich quick. Ultimately, Gauthier was charged with crimes ranging from racketeering to security fraud.

Reed Slatkin was a co-founder of a technology company named Earthlink. He was also a Scientology Minister. Beginning in 1986, Slatkin ran a Ponzi scheme that lasted fifteen years. He made use of an unlicensed 'investment club', where he promised his dupes a 24% return on their money. In total he stole $592 million from nearly 800 people. Slatkin was charged and found guilty of 15 counts of fraud, conspiracy and money laundering.

Bernie Madoff Stole $65 billion from investors and committed over 11 federal felonies. Madoff received the maximum sentence of 150 years in prison. He is currently doing his time in Raleigh, North Carolina. Madoff ran a wealth management company in New York. It began as a legitimate business but ultimately the entire operation became one giant Ponzi scheme. His son, Mark, who worked with him, claimed not to be involved in the fraud; however, he committed suicide in December of 2010.

FAKE CANCER CLAIM

Prosecutors in Faribault Minn. say a man lied about having terminal cancer, collected thousands of dollars in donations and spent the money on video games and marijuana.

Thirty-seven-year-old Jeremiah Jon Smith is charged in Rice County with theft by swindle. Investigators say fundraisers and a 'GoFundMe' web page, which had been set up for Smith, generated $23,000 to help cover his medical expenses.

CANCER TREATMENTS? INVESTIGATE THOROUGHLY

If you or someone you care about has cancer, the last thing you need is a phony promise of a treatment. Scammers exist who market un-proven and sometimes even harmful products to cancer patients. In many cases, the product can have serious repercussions. Asking questions is the best way to satisfy your curiosity, and manage your treatment wisely. I hate to say it but here goes, "Talk to your doctor!"

CHARITY SCAMS

Fraud artists attempt to profit from people’s generosity and carelessness. Consider the following precautions to make sure your donations benefit the people and organizations you want to assist.

BEFORE CONTRIBUTING,

Be wary of appeals that tug at your heart strings, especially pleas involving current events.
Ask for written information about the charity, including name, address and telephone number.
Ask for the registered charitable tax number of the charity.
Check out the charity's financial information. For many organizations, this information can be found online.
Ask for verifiable identification.
Call the charity. Find out if the organization is aware of the solicitation and has authorized the use of its name. If not, you may be dealing with a scam artist.
Refuse high pressure appeals. Legitimate fund-raisers won't push you to give on the spot.
Avoid cash gifts. Cash can be lost or stolen. For security and tax record purposes, it's best to pay by cheque.

AVOID FAKE CHARITIES

Canadians have a long and honourable tradition of voluntary giving to those in need, often through charity organizations.

The end of the year is the peak season for charity appeals. It also is the peak season for the bogus charity appeals.

At the beginning of each year decide which charities you can afford to support. Send your checks directly to their head office. When approached you can say that you have already given and leave it at that.

THE U.S. FEDERAL TRADE COMMISSION

The rate of fraud perpetration against businesses is high, and the resulting losses are immense. In a recent American research study, the Association of Certified Fraud Examiners, estimated that fraud costs American organizations more than US $400 billion annually.

The Federal Trade Commission works to prevent fraudulent, deceptive, and unfair business practices. They also provide information to help consumers spot, stop, and avoid scams and fraud.

The commission looked into four cancer charities run by extended members of the same family. It reported that these charities conned donors out of $187 million from 2008 through 2012 and spent almost nothing to help actual cancer patients.

1. The Cancer Fund of America is run by James Reynolds, Sr.

2. Cancer Support Services is another charity run by the elder James Reynolds

3. The Breast Cancer Society is run by his son and CEO James Reynolds, Jr.

4. The Children's Cancer Fund of America, is run by Rose Perkins, ex-wife of James Reynolds, Sr.

The FTC's Bureau of Consumer Protection, says that in all, the charities spent about 97% of donations they received either on private fundraisers or on themselves. Only 3% went to help actual cancer patients. It is on record that, "Donated funds were used to pay for vehicles, personal consumer goods, college tuition, gym memberships, Jet Ski outings, dating website subscriptions, luxury cruises, and tickets to concerts and professional sporting events." As a result two of the charities say they will close their doors. Both the Breast Cancer Society and the Children's Cancer Fund of America are being dissolved. James Reynolds Jr. faces a judgment of more than $60 million in fines and Rose Perkins faces a judgment of around $30 million.

OTHER SCAMS AROUND THE WORLD

1. Hurricane Katrina:

Following the 2005 devastation of the American Gulf Coast, the FBI estimates around 4,000 websites sprang up to misdirect genuine signs of charity into the bank accounts of shameless scammers. At least 60% of these were hosted on foreign servers. Some solicited donations posing as the Red Cross and other real charities doing real work.

2. Haitian Earthquake:

5 years after Katrina, the cataclysmic earthquake that ravaged Haiti sent even more would-be philanthropists scrambling for their debit cards. It also inspired sick opportunists to start immediately registering fake domains and posting solicitations within hours of the tragedy.

3. Japan Disaster Relief:

Considering the myriad hardships and heartbreaks befalling Japan within the past few weeks, it comes as absolutely no surprise that the shameless and greedy immediately started cashing in on the triple tragedies of the earthquakes, tsunami and nuclear meltdown.

4. 9/11 Tragedy:

Eager donors found themselves targeted by shameless organizations claiming to help the families of victims, firefighters and law enforcement officials. Tuesday’s Children, for example, saw at least $311,000 go towards non-related expenses for founder Chris Burke. However, his parents donated $500,000 to defray some of the fraudulent spending. Regardless, Burke’s offences put a face on what sort of person thinks it’s perfectly acceptable to steal from individuals already traumatized by the horrific events.

THE QUESTION:

Is it true that a sucker is born every minute?

THE LEMON:

Awarded to the "Ponzi Boys" pictured above.

THE QUOTE:

"There is a sufficiency in the world for man's need but not for man's greed." Mahatma Gandhi