Investment Scams Involving Gold Rise With Increased Price
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.