With the dollar down and a recent history of strong growth for gold, gold
investment schemes are on the rise.
Most scams involve purchasing gold through a sales agent (read: con artist)
who offers to then hold the gold in a "secure vault," thereby
enabling the investor to sell the gold quickly, with little turn-around
time. Generally, either the gold or the "vault" (or both) doesn't
exist. Other scams involve investing in gold mines.
In June, the SEC charged Milowe Allen Brost and Gary Allen Sorenson of
Calgary, Alberta, along with four companies and four other individuals
with securities fraud. The SEC's complaint alleged that the group
ran a $300 million
Ponzi scheme involving a fake gold-mining operation that affected over 3,000 U.S. and
Canadian investors, according to a June 14 article on InvestmentAdvisor.com.
The case is just one of many lawsuits involving gold scams and other commodities
investment schemes. An August 3 article on CBSMoneyWatch.com lists gold
schemes as one of the top five investment scams in 2010. And, the North
American Securities Administrators Association lists schemes involving
gold and other precious metals as a 2010 Top Ten Investor Trap.
If you've been the victim of a gold scam or other investment scheme,
contact our office to discuss your options now.