Meyer Wilson | Investor Claims In the News
Ohio Consumer Alert: Tax Season is Prime Time for Investment Scams
Posted on Mar 07, 2011
Investors and consumers should always be on the lookout for investment fraud, but heightened vigilance is necessary during tax season, when instances of fraud tend to rise by more than 10 percent. Like all fraudsters, tax season con artists tend to target the elderly and disadvantaged consumers the most.
Take Betty Sheldon's mother for example. The 91-year-old woman was sold a $123,000 32-year annuity and a fake certificate of deposit by financial advisor Mark Kirchoff ("Protecting yourself from scams during the tax season," Fox19, Feb. 25, 2011). Later found guilty of theft and fraud and sentenced to 15 years in prison, Kirchoff defrauded 10 elderly investors out of more than $250,000.
Financial predators like to prey on the elderly and the sick because they are often most trusting and less able to make sound financial decisions than other adults. Knowing what to watch for, particularly if you're an adult over age 55 or in poor health, is key to avoiding investment fraud. If Kirchoff's 10 victims had known the red flags of investment fraud, they may have been able to avoid his scams.
Red flags of investment fraud include:
• High-pressure sales tactics and pushy sales agents;
• "Secret" deals that "no one else" knows about;
• Complicated products with overly complex investment strategies;
• Guaranteed returns; and/or
• Missing documentation and vague answers.
In addition to common investment schemes, taxpayers should watch out for fake messages from the IRS. In a ToledoontheMove.com article, Ohio Attorney General Mike DeWine was quoted warning Ohio taxpayers to watch for suspicious emails that could be from con artists hoping to capture personal information:
"Scam artists know that this is tax season, and they are trying to confuse customers who are preparing to file their taxes," he said. He further stated that the IRS does not use email to communicate with taxpayers about problems with their tax returns ("Ohio Attorney General warns beware of tax scams," Feb. 18, 2011).
To be on the safe side, Internet users should refrain from responding to requests for identifying information and from clicking on links that lead to unknown third party websites. Taxpayers who suspect a tax scam can forward suspicious emails to Phishing@IRS.gov.
About our law firm:
The Ohio-based law firm of Meyer Wilson represents individuals in Ohio and throughout the country who have been harmed by investment fraud. All of our cases are handled on a contingency fee basis and we never request a retainer of any kind. Contact us toll-free at 1.866.827-6537 for more information or complete the online form on the top of this page and we will respond promptly.