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Tag: $1.2

The SEC busted an alleged $1.2 billion Ponzi scheme. Here's how not to be victimized.

The SEC busted an alleged $1.2 billion Ponzi scheme. Here's how not to be victimized.

Finance
The Securities and Exchange Commission on Thursday announced charges against a group of unregistered funds and their owner, for allegedly fleecing retail investors through a $ 1.2 billion Ponzi scheme. The victims include more than 8,400 individuals, many of whom are elderly.In a Ponzi scheme, the perpetrator generally takes money from one set of investors to pay off others, often earlier investors or simply diverts the proceeds for private gain.Fraud complaints have increased by 60 percent in the last five years, according to the Federal Trade Commission. "The frightening truth about fraud is scammers scam and liars lie," said Gerri Walsh, senior vice president of investor education at the Financial Industry Regulatory Authority, or FINRA, which regulates brokerage firms.To lessen the cha...