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"&lt;p&gt;James S. McTighe/FBI Special Agent in Charge:&lt;/p&gt;\r\n&lt;p&gt;It\u2019s truly sad that an unscrupulous individual can convince a trusting person to invest their life savings in a fraud that results in them losing everything that they\u2019ve worked so hard for in their lives.&lt;/p&gt;\r\n&lt;p&gt;Ken Israel/Director, Securities and Exchange Commission Salt Lake Regional Office&lt;/p&gt;\r\n&lt;p&gt;The frauds we see in Utah that are the biggest problems to Utah investors are typically what we call offering frauds. And they can be of several different varieties. Probably the most notorious right now are what are called Ponzi schemes.&lt;/p&gt;\r\n&lt;p&gt;Keith Woodwell/Director, Utah Division of Securities:&lt;/p&gt;\r\n&lt;p&gt;Whatever the story is about how money is being made whether they say they are investing in real estate, whether it\u2019s trading foreign currency, whether it\u2019s investing in antiques or concert tickets, we\u2019ve seen all of those, but the hallmark of the Ponzi scheme is that you use money from new investors to pay off your old investors, and of course put a bunch in your pocket at the same time, and there\u2019s no real income being generated by the underlying business.&lt;/p&gt;\r\n&lt;p&gt;Ken Israel/Director, Securities and Exchange Commission Salt Lake Regional Office:&lt;/p&gt;\r\n&lt;p&gt;Ponzi schemes always collapse eventually and it\u2019s typically because you run out of newer investors.&lt;/p&gt;\r\n&lt;p&gt;Keith Woodwell/Director, Utah Division of Securities:&lt;/p&gt;\r\n&lt;p&gt;If you can\u2019t bring enough new money in to pay off your old investor it\u2019s like a house of cards it collapses, falls in on itself and everybody that invested is left holding the bag.&lt;/p&gt;\r\n&lt;p&gt;James S. McTighe/FBI Special Agent in Charge:&lt;/p&gt;\r\n&lt;p&gt;Affinity fraud is when someone you know, for example, a church member, a coworker or a friend takes advantage of you in an investment fraud scheme.&lt;/p&gt;\r\n&lt;p&gt;Kaylene/Affinity Fraud Victim:&lt;/p&gt;\r\n&lt;p&gt;He was a religious man, so he says, and he really, he really put on the \u2018you know I am so guided by the spirit\u2019 and \u2018I know I am here to help you\u2019 and \u2018just trust me\u2019.&lt;/p&gt;\r\n&lt;p&gt;He just had the right words to say and I was single, I was a widow and he knew, he knew what to say to me to make me think everything was going to be great and so I did everything in my power to get the money and I gave it to him without even getting a contract signed.&lt;/p&gt;\r\n&lt;p&gt;Keith Woodwell/Director, Utah Division of Securities:&lt;/p&gt;\r\n&lt;p&gt;Affinity fraud is not really a type of fraud; it\u2019s more a way to market your fraud. So any kind of scam that a con artist is putting together, you use affinity fraud to find investors. I think of it more in terms of friends and family fraud, that\u2019s an easier term to recognize.&lt;/p&gt;\r\n&lt;p&gt;Ken Israel/Director, Securities and Exchange Commission Salt Lake Regional Office&lt;/p&gt;\r\n&lt;p&gt;Affinity frauds are fairly common here in Utah. Usually here they are directed at members of the LDS Church and that\u2019s because the investment solicitations come through church connections.&lt;/p&gt;\r\n&lt;p&gt;James S. McTighe/FBI Special Agent in Charge:&lt;/p&gt;\r\n&lt;p&gt;Because of the trusting relationships they have with other church members, unscrupulous people can take advantage of that. But affinity fraud is not confined to just the LDS Church; any other church member can become a victim of affinity fraud for the same reasons.&lt;/p&gt;\r\n&lt;p&gt;Ken Israel/Director, Securities and Exchange Commission Salt Lake Regional Office:&lt;/p&gt;\r\n&lt;p&gt;We see affinity frauds in all kinds of varieties, they can be directed at ethnic groups or racial groups, other kinds of religious groups and they are certainly not confined to Utah, we see them all over the country.&lt;/p&gt;\r\n&lt;p&gt;Keith Woodwell/Director, Utah Division of Securities:&lt;/p&gt;\r\n&lt;p&gt;People tend to not do the due diligence and research they should do because they think this is a person I know, I go to church with him, he\u2019s been my neighbor for 15 years, whatever the circumstances are, I work with this person, I know him, he\u2019s good for it, I can trust him.&lt;/p&gt;\r\n&lt;p&gt;Ken Israel/Director, Securities and Exchange Commission Salt Lake Regional Office:&lt;/p&gt;\r\n&lt;p&gt;I think a lot of these scam investments are sold by people who are great salesmen, quite frankly. They can be charming; they can use existing relationships they may have with investors. I had one defendant in a case many years ago who said, \u2018give me a story and I can sell it to anybody\u2019, and he was right.&lt;/p&gt;\r\n&lt;p&gt;Kaylene/Affinity Fraud Victim:&lt;/p&gt;\r\n&lt;p&gt;He had done it enough and I think taken enough people\u2019s money and that\u2019s how he lived and he had a great big home, he lived a really good lifestyle.&lt;/p&gt;\r\n&lt;p&gt;James S. McTighe/FBI Special Agent in Charge:&lt;/p&gt;\r\n&lt;p&gt;If the individual asks you to keep the investment secret, that should send up red flags. If the individual drives a fancy car, lives in a large home and makes a point of showing you all these things, don\u2019t necessarily believe that this individual is a sound investor, he may be a shyster that\u2019s trying to take your money.&lt;/p&gt;\r\n&lt;p&gt;Keith Woodwell/Director, Utah Division of Securities:&lt;/p&gt;\r\n&lt;p&gt;And so when a promoter comes to you and says to you \u2018hey, I\u2019ve got the answer\u2019, I can make you 3% a month, 4% a month, 5% a month, whatever it is, guaranteed with little or no risk, they\u2019re lying to you. There is no such investment. Risk, reward always go together. If you want high rewards, you\u2019re taking on high risk.&lt;/p&gt;\r\n&lt;p&gt;James S. McTighe/FBI Special Agent in Charge:&lt;/p&gt;\r\n&lt;p&gt;I think the maxim buyer beware is appropriate. Individuals who want to invest their money have to complete their due diligence. Research the investment firm you are planning on investing your money with, research the individual you are planning on investing your money with.&lt;/p&gt;\r\n&lt;p&gt;Ken Israel/Director, Securities and Exchange Commission Salt Lake Regional Office:&lt;/p&gt;\r\n&lt;p&gt;Check out what\u2019s being offered through as many independent sources as you can. Just don\u2019t just take the statements or materials given to you buy the person selling you the security as truth.&lt;/p&gt;\r\n&lt;p&gt;Keith Woodwell/Director, Utah Division of Securities:&lt;/p&gt;\r\n&lt;p&gt;You know, when it comes to fraud I think the best advice probably came from, well it\u2019s what my grandmother used to say to me and probably what many grandmothers have said to many people through the years, if something sounds too good to be true, I wouldn\u2019t say it probably is, I would say it is too good to be true. When it comes to investing there is no free lunch out there.&lt;/p&gt;\r\n&lt;p&gt;Kaylene/Affinity Fraud Victim:&lt;/p&gt;\r\n&lt;p&gt;Losing the 35-thousand has been devastating for me. I refinanced my condo; I live on a set income. I am not afraid to let anybody know, don\u2019t invest in something you don\u2019t know is a sure thing; don\u2019t trust the person that keeps telling you everything that you want to hear.\u00A0&lt;/p&gt;\r\n&lt;p&gt;James S. McTighe/FBI Special Agent in Charge:&lt;/p&gt;\r\n&lt;p&gt;It\u2019s truly sad that an unscrupulous individual can convince a trusting person to invest their life savings in a fraud that results in them losing everything that they\u2019ve worked so hard for in their lives.&lt;/p&gt;\r\n&lt;p&gt;Ken Israel/Director, Securities and Exchange Commission Salt Lake Regional Office&lt;/p&gt;\r\n&lt;p&gt;The frauds we see in Utah that are the biggest problems to Utah investors are typically what we call offering frauds. And they can be of several different varieties. Probably the most notorious right now are what are called Ponzi schemes.&lt;/p&gt;\r\n&lt;p&gt;Keith Woodwell/Director, Utah Division of Securities:&lt;/p&gt;\r\n&lt;p&gt;Whatever the story is about how money is being made whether they say they are investing in real estate, whether it\u2019s trading foreign currency, whether it\u2019s investing in antiques or concert tickets, we\u2019ve seen all of those, but the hallmark of the Ponzi scheme is that you use money from new investors to pay off your old investors, and of course put a bunch in your pocket at the same time, and there\u2019s no real income being generated by the underlying business.&lt;/p&gt;\r\n&lt;p&gt;Ken Israel/Director, Securities and Exchange Commission Salt Lake Regional Office:&lt;/p&gt;\r\n&lt;p&gt;Ponzi schemes always collapse eventually and it\u2019s typically because you run out of newer investors.&lt;/p&gt;\r\n&lt;p&gt;Keith Woodwell/Director, Utah Division of Securities:&lt;/p&gt;\r\n&lt;p&gt;If you can\u2019t bring enough new money in to pay off your old investor it\u2019s like a house of cards it collapses, falls in on itself and everybody that invested is left holding the bag.&lt;/p&gt;\r\n&lt;p&gt;James S. McTighe/FBI Special Agent in Charge:&lt;/p&gt;\r\n&lt;p&gt;Affinity fraud is when someone you know, for example, a church member, a coworker or a friend takes advantage of you in an investment fraud scheme.&lt;/p&gt;\r\n&lt;p&gt;Kaylene/Affinity Fraud Victim:&lt;/p&gt;\r\n&lt;p&gt;He was a religious man, so he says, and he really, he really put on the \u2018you know I am so guided by the spirit\u2019 and \u2018I know I am here to help you\u2019 and \u2018just trust me\u2019.&lt;/p&gt;\r\n&lt;p&gt;He just had the right words to say and I was single, I was a widow and he knew, he knew what to say to me to make me think everything was going to be great and so I did everything in my power to get the money and I gave it to him without even getting a contract signed.&lt;/p&gt;\r\n&lt;p&gt;Keith Woodwell/Director, Utah Division of Securities:&lt;/p&gt;\r\n&lt;p&gt;Affinity fraud is not really a type of fraud; it\u2019s more a way to market your fraud. So any kind of scam that a con artist is putting together, you use affinity fraud to find investors. I think of it more in terms of friends and family fraud, that\u2019s an easier term to recognize.&lt;/p&gt;\r\n&lt;p&gt;Ken Israel/Director, Securities and Exchange Commission Salt Lake Regional Office&lt;/p&gt;\r\n&lt;p&gt;Affinity frauds are fairly common here in Utah. Usually here they are directed at members of the LDS Church and that\u2019s because the investment solicitations come through church connections.&lt;/p&gt;\r\n&lt;p&gt;James S. McTighe/FBI Special Agent in Charge:&lt;/p&gt;\r\n&lt;p&gt;Because of the trusting relationships they have with other church members, unscrupulous people can take advantage of that. But affinity fraud is not confined to just the LDS Church; any other church member can become a victim of affinity fraud for the same reasons.&lt;/p&gt;\r\n&lt;p&gt;Ken Israel/Director, Securities and Exchange Commission Salt Lake Regional Office:&lt;/p&gt;\r\n&lt;p&gt;We see affinity frauds in all kinds of varieties, they can be directed at ethnic groups or racial groups, other kinds of religious groups and they are certainly not confined to Utah, we see them all over the country.&lt;/p&gt;\r\n&lt;p&gt;Keith Woodwell/Director, Utah Division of Securities:&lt;/p&gt;\r\n&lt;p&gt;People tend to not do the due diligence and research they should do because they think this is a person I know, I go to church with him, he\u2019s been my neighbor for 15 years, whatever the circumstances are, I work with this person, I know him, he\u2019s good for it, I can trust him.&lt;/p&gt;\r\n&lt;p&gt;Ken Israel/Director, Securities and Exchange Commission Salt Lake Regional Office:&lt;/p&gt;\r\n&lt;p&gt;I think a lot of these scam investments are sold by people who are great salesmen, quite frankly. They can be charming; they can use existing relationships they may have with investors. I had one defendant in a case many years ago who said, \u2018give me a story and I can sell it to anybody\u2019, and he was right.&lt;/p&gt;\r\n&lt;p&gt;Kaylene/Affinity Fraud Victim:&lt;/p&gt;\r\n&lt;p&gt;He had done it enough and I think taken enough people\u2019s money and that\u2019s how he lived and he had a great big home, he lived a really good lifestyle.&lt;/p&gt;\r\n&lt;p&gt;James S. McTighe/FBI Special Agent in Charge:&lt;/p&gt;\r\n&lt;p&gt;If the individual asks you to keep the investment secret, that should send up red flags. If the individual drives a fancy car, lives in a large home and makes a point of showing you all these things, don\u2019t necessarily believe that this individual is a sound investor, he may be a shyster that\u2019s trying to take your money.&lt;/p&gt;\r\n&lt;p&gt;Keith Woodwell/Director, Utah Division of Securities:&lt;/p&gt;\r\n&lt;p&gt;And so when a promoter comes to you and says to you \u2018hey, I\u2019ve got the answer\u2019, I can make you 3% a month, 4% a month, 5% a month, whatever it is, guaranteed with little or no risk, they\u2019re lying to you. There is no such investment. Risk, reward always go together. If you want high rewards, you\u2019re taking on high risk.&lt;/p&gt;\r\n&lt;p&gt;James S. McTighe/FBI Special Agent in Charge:&lt;/p&gt;\r\n&lt;p&gt;I think the maxim buyer beware is appropriate. Individuals who want to invest their money have to complete their due diligence. Research the investment firm you are planning on investing your money with, research the individual you are planning on investing your money with.&lt;/p&gt;\r\n&lt;p&gt;Ken Israel/Director, Securities and Exchange Commission Salt Lake Regional Office:&lt;/p&gt;\r\n&lt;p&gt;Check out what\u2019s being offered through as many independent sources as you can. Just don\u2019t just take the statements or materials given to you buy the person selling you the security as truth.&lt;/p&gt;\r\n&lt;p&gt;Keith Woodwell/Director, Utah Division of Securities:&lt;/p&gt;\r\n&lt;p&gt;You know, when it comes to fraud I think the best advice probably came from, well it\u2019s what my grandmother used to say to me and probably what many grandmothers have said to many people through the years, if something sounds too good to be true, I wouldn\u2019t say it probably is, I would say it is too good to be true. When it comes to investing there is no free lunch out there.&lt;/p&gt;\r\n&lt;p&gt;Kaylene/Affinity Fraud Victim:&lt;/p&gt;\r\n&lt;p&gt;Losing the 35-thousand has been devastating for me. I refinanced my condo; I live on a set income. I am not afraid to let anybody know, don\u2019t invest in something you don\u2019t know is a sure thing; don\u2019t trust the person that keeps telling you everything that you want to hear.&lt;/p&gt;"^^<http://www.w3.org/2001/XMLSchema#string>
<https://www.fbi.gov/video-repository/newss-slc-frauds/view>