Affinity Fraud IV

     From what we have seen, it is clear that the main emphasis of affinity fraud is for the fraudster to find the group leader and exploit the leader's hold over the group to move the fraud forward.  

     It goes without saying that once the fraudster has his "hooks" into the community via the leader, the fraud can begin.  In many instances, these frauds are the usual run-of-the mill pyramid schemes or Ponzi schemes.  The only real difference is that their is an added "element" to the fraud; the fraud is perpetuated through a third party (the community leader, whether willingly or unwittingly).  But, this element adds some surprises to this entire scheme.

   This thread is based on an article in the March/April 2013 edition of Fraud magazine by Franklin Perry and Richard Brody.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Affinity Fraud III

So - to continue our discussion of affinity fraud.

After the fraudster has convinced the leader of the group that the fraudster is legitimate, the fraudster then uses the leader as a pawn to convince the group to go along with the scheme of the fraudster. 

     Unfortunately, in many groups, the leader of the group has the trust of his followers to the point where they often will listen to the leader without doing any independent research.  Keep in mind that I am not talking about a cult.  As stated in previous posts, a group relies on the strength of the group to protect its members, especially in a new society.  It is not therefore unusual for members of an affinity group to lose some of their ability for critical thought in these situations.

NOTE - this thread is based on information from the article "Affinity is Only Skin Deep" by Frank S. Perry and Richard Brody in the March/April 2013 issue of Fraud magazine.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Affinity Fraud II

     As stated in the last post, affinity refers to a kinship or a shared group characteristic.  A good example is an ethnic group.  America is a nation of immigrants and as members of one ethnic group come to America, it is only natural that (usually) the members of this group will look up other members of their community that have already been here. 

   Offenders who commit affinity fraud are usually members of the group or people who pretend to be members of the group.  This is a common way to gain entrance into the group.  Usually, the next step is for these fraudsters to enlist a respected member of this community.  The leaders of the community often have no idea that they are being set up.

NOTE - this thread is based on information from the article "Affinity is Only Skin Deep" by Frank S. Perry and Richard Brody in the March/April 2013 issue of Fraud magazine.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Affinity Fraud

For some reason this post did not seem to go through, so I am reposting it.

     We will spend the next thread talking about affinity fraud.  Affinity fraud is a type of fraud where fraudsters use their similar characteristic to gain trust, whether with a religious organization, a cultural group, a linguistic group, a group of friends or any other type of group where the group members know each other and/or share a common shared characteristic(s).

      All frauds involve a breach of trust, but this type of fraud is insidious in the extreme.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Bribery indictments in the Western District

Bribery indictments in the Western District of Texas

http://www.justice.gov/usao/txw/news/2013/UTSA_Council_etal_indictment.html

Tomorrow we will start on a new thread.

I notice I now have readers of this blog in Iceland: Velkomin!

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Sad case involving Planned Parenthood

For my international readers - Planned Parenthood is an organization in the United States that provides family planning services as well as abortions.  It is a controversial organization.  However one feels about the organization, however, it is said that Planned Parenthood found itself in this situation.

http://www.justice.gov/usao/txe/News/2013/edtx-settlement-plan-081613.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Bank fraud and money laundering in the Eastern District

Interesting case of bank fraud and money laundering in the Eastern District of Texas

http://www.justice.gov/usao/txe/News/2013/edtx-wcc-prince-081513.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Woman arrested for allegedly voting multiple times

A woman was arrested in the Southern District of Texas for allegedly voting multiple times. 

Election fraud is a Federal crime. 

http://www.justice.gov/usao/txs/1News/Releases/2013%20August/130820%20-%20Solis.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Drug trafficking and money laundering in the Southern District

Drug trafficking and money laundering often go hand in hand.

http://www.justice.gov/usao/txs/1News/Releases/2013%20August/130815%20-%20Navarro%20et%20al.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Military Recruitment Fraud in the Southern District

An strange case of military recruitment fraud in the Southern District of Texas

http://www.justice.gov/usao/txs/1News/Releases/2013%20August/130816%20-%20Rambaran%20et%20al.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Back to work!

To the readers of my blog - sorry for the absence.  I had a project that took a great deal of my time.

Tomorrow we will be back with a new thread.


--------->>>>>>>>>>>>>>gene

Strange Immigration Scam III

Let's look at another way in which this scam should seem mysterious: the scammer stating that the money must be paid now, NOW, NOW!!!

     Whenever a person is told that they have to pay within a VERY limited amount of time to avoid a terrible Federal consequence, alarm bells should be raised.  Now - it is entire possible to run against a time limitation when dealing with the Federal government.  For example, you may have a certain deadline to pay taxes, file immigration paperwork or pay a fine.  However, the idea that a representative from the Federal government would call a person out of the blue and tell them they have only hours to pay a fee to avoid a terrible Immigration consequence is not realistic.

     Scams such as this one rely on the element of surprise - that the person will be so shocked and terrified that they will do anything to comply. 

 

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Strange Immigration Scam II

There are many ways in which this described matter is a scam.  Let's start with the obvious:

     Government workers do NOT tell a person that they must pay "IMMEDIATELY" using traveler's checks or some kind of strange money transfer.  This is the first clue that something is amiss.  If a bill or invoice needs to be paid, it must be paid through official U.S. Government approved methods.  This does not mean that a traveler's check needs to be used or an untraceable money transfer system will be used. 

     Think of when taxes are paid.  Your Federal income taxes are paid by check with the check made out to some part of the "United States Government." 

   Why would you be asked to pay a bill to the U.S. Government but the method of payment will not be addressed to the U.S. Government?

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Strange Immigration Scam

I received a heads up from my law partner today about a strange, apparently new, Immigration scam.

     A person who is here in the U.S. on a visa is called by a "representative" of the United States Citizenship and Immigration Service ("USCIS") who tells them their visa status is out of date and that this needs to be remedied IMMEDIATELY or the person faces deportation.

   The person is then told that they need to send money, usually in the form of money orders or traveler's checks to an address to prevent the deportation. 

    This is a scam, pure and simple.  We will spend some time analyzing this over the next few days.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Former Texas Representative convicted of extortion

Sad case of a former Texas representative abusing his position of power and authority for personal financial gain.

http://www.justice.gov/usao/txs/1News/Releases/2013%20August/130802%20-%20Solis.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

 

Wire Fraud in the Southern District of Texas

Wire fraud in the Southern District of Texas

http://www.justice.gov/usao/txs/1News/Releases/2013%20August/130802%20-%20Chilo.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Companies liable for employees' actions

Interesting decision about how companies can be held liable for the fraud activities of their employees.

http://600camp.com/?p=1915&utm_source=rss&utm_medium=rss&utm_campaign=company-vicariously-liable-for-its-employees-kickbacks

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Chasing Madoff - the movie

     Long-time readers of this site know that I like to recommend books and movies every now and then.  In this spirit, I highly recommend the movie "Chasing Madoff."  It is the story of Harry Markopolous who spent 10 years trying to convince anyone who would listen that Bernie Madoff was running the largest Ponzi scheme in history. 

    It is a frustrating story in that Markopolous' warnings fell on so many deaf ears for many years.  The SEC, the supposed "guardians" of the American financial system failed miserably. 

     But, it is a good story in that Markopolous was eventually vindicated.  His story of persistence and the desire to do right is inspiring.

    This movie is based on Markopolous' book, which was reviewed earlier on this site and is also highly recommended.

http://en.wikipedia.org/wiki/Chasing_Madoff

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk