The United States SEC announced a civil action against First Resource Group LLC and its principal David H. Stern alleging that they fraudulently touted stock in two thinly-traded microcap companies TrinityCare Senior Living, Inc. and Cytta Corporation, sold each company’s stock at the same time they were touting it, and manipulated the markets in both penny stocks in violation of the antifraud provisions of the federal securities laws.

More >>

Management Solutions, Inc. Real Estate Ponzi Scheme

Emergency asset freeze in a $220 million real estate based offering fraud and Ponzi scheme orchestrated by Wendell A. Jacobson and Allen R. Jacobson through Management Solutions, Inc. and over 200 other entities controlled by the Jacobsons.

See Report

Penny Stock Manipulation scheme involving the stock of Rudy Nutrition

Securities and Exchange Commission announced charges against Daniel “Rudy” Ruettiger and 12 other individuals who participated in a pump-and-dump scheme involving the stock of Rudy Nutrition, a now defunct Nevada corporation.

Investment Fraud – Pre-IPO Investment Scams

Warning about investment scams that offer investors the opportunity to buy pre-IPO shares of Facebook, Twitter, Groupon, or other popular companies. There are a number of complaints and inquiries about these types of pre-IPO investment fraud, which may be promoted on social media and Internet sites, by telephone, email, in person, or by other means.

In September 2010 a fraud artist had stolen more than $3.7 million from 45 investors in 4 states by offering fraud pre-IPO shares of companies, including Centerpoint, AOL/Time Warner, Inc., Google, Inc., Facebook, Inc., and Rosetta Stone, Inc.

Investors need to be mindful of the risks involved with an offer to purchase pre-IPO shares in a company.

Investment Fraud – Solar Energy Investments

Consumers need to be cautious of home improvement contractor installers that offer deals that are too good to be true. Usually they are.

Solar Investment Fraud 1.
Determine if solar energy is right for you. Due to the high costs associated with the initial investment of solar power, it is important to conduct a self energy audit to determine if solar energy is right for you. Usually, if your monthly bill is less than $100, consider other ways to save energy that cost less.

Solar Investment Fraud 2.
Consider all the costs associated with solar energy. Ask about all the costs associated with the maintenance and upkeep of the system. Determine if the benefits and savings outweigh the costs over the long run.

Solar Investment Fraud 3.
Stay informed about state and federal incentive programs. Depending on your location, state and federal programs can save you as much as 50% on installation costs. Be sure to understand the terms and conditions of the incentive programs and conduct your own research prior to signing a contract with an installer. For the latest information on state programs, visit http://www.dsireusa.org/.

Solar Investment Fraud 4.
Be cautious of installers that promise no out of pocket costs prior to reviewing your specific situation. Be leery if an installer suggests obtaining credit for the full amount of the system even though they are promising very low or no costs due to rebates.

Solar Investment Fraud 5.
Make sure the roof of your home is equipped to sustain a solar panel system. Even though a properly installed solar system will not damage your roof, make sure your roof is in good condition before you begin the installation to avoid any future problems.

Solar Investment Fraud 6.
Understand how your solar energy works. You can take full advantage of the benefits in solar energy once you know how it works. For instance, panels facing south with no shade obstructions receiving maximum sun exposure during the hours of 9 a.m. and 3 p.m., will provide the greatest percent of energy. Significant savings occur when you have excess energy that is not consumed by your household. This excess energy can then be credited to your utility bill, saving you money.

Source: BBB

Two computer programmers who worked in the Manhattan offices where Bernard Madoff masterminded a multibillion-dollar Ponzi scheme were arrested by federal agents for their role in concealing the fraud for more than 15 years.

Jerome O’Hara and George Perez, who worked on the 17th- floor of the midtown building where Madoff’s investment business was run, helped construct the “house of cards” that enabled him to defraud investors for decades, Manhattan U.S. Attorney Preet Bharara said yesterday in a statement.

“The computer codes and random algorithms they allegedly designed served to deceive investors and regulators and concealed Madoff’s crimes,” Bharara said.

O’Hara, 46, and Perez, 43, face charges including conspiracy and falsifying documents. Prosecutors said they found handwritten notes in O’Hara’s desk from 2006 saying, “I won’t lie any longer. Next time I say, ‘Ask Frank,’” a reference to Madoff lieutenant Frank DiPascali. Madoff directed DiPascali to pay the men bonuses of $60,000 each along with a 25 percent salary increase as hush money, prosecutors said in court papers.

More >>>> http://www.bloomberg.com/apps/news?pid=newsarchive&sid=anN14sW46eoE

Investment Fraud – Twin River Lending Group : Advance Fee Loan Scam

Twin River Lending Group in Rhode Island advertises fraud that it will give consumers loans regardless of their credit history. They require an upfront fee of $100. Complaints have been flooding in to BBB from consumers who say that they paid the fee, but never received their loan.

When a local TV station tried to get in touch with them, the phone number was out of service and the address listed for the company did not exist. Don’t get scammed by a company like this! Paying a fee, especially by wire transfer, in advance for a service that has not yet been performed is not recommended. Once the fee has been wire transferred, it is almost impossible to track.

Fraud Report Website has information from the BBB that there’s a scam floating around that’s being distributed in the form of an email. The email claims to be from the Better Business Bureau (BBB) and has the subject “Now Hiring!!”

The BBB says this email is not from them, but a scam. The email also claims that you can make money by simply driving your car … that an advertiser is wanted for the Better Business Bureau and that you’ll earn no less than $200 weekly to advertise on your car.

The scam tries to get you to email your personal information and says that they will get back to you. What you’ll want to do is stay clear of this bogus offer.

Source: http://www.bbb.org/us/article/warning-fake-bbb-email-scam-offers-to-pay-you-200-per-week-23065?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+US-BBB-Alerts-and-Scams+(US+BBB+Alerts+and+Scams)

In Pennsylvania the BBB has received numerous calls from consumers regarding a fraudulent babysitting advertisement in local newspapers. The ad is looking for a babysitter for young children. When consumers respond to the ad, they are told the position has been filled, but they will pass along their information to another “friend” who is looking for a babysitter.

The “friend” contacts the consumer explaining they are in a foreign country and will coming over to the U.S. They explain they will start sending the consumer checks, which they are supposed to deposit and then wire a portion back to their employer. The checks are fake, and once a consumer deposits the check they are responsible for that money. The job listing is an illegal scam and considered money laundering.

Your BBB warns consumers to never wire money to anyone you don’t know, and as the Better Business Bureau always says, “If it sounds too good to be true, it normally is.”

source: http://www.bbb.org/us/article/babysitting-scam-hits-local-papers-22144?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+US-BBB-Alerts-and-Scams+(US+BBB+Alerts+and+Scams)

In a down economy the model scam comes out in force. Acting or modeling, be on the lookout for fraud. Some modeling agencies are just trying to make a fast buck and don’t deliver on promises of fame and fortune.

In the last 3 years, “would be” models have researched agencies and more than 2,000 complaints from people who feel they were misled by an agency into paying large upfront fees – often for headshots and portfolios – and received little or no modeling or acting work in return.

Common complaints about talent and modeling agencies often come from “would be” models or parents who think their kids have star potential. Typically, they are told they need to pay upfront fees – such as for headshots – after which the agency will start finding them work. Fraud complainants report that despite paying hundreds or even thousands of dollars in various upfront fees, the agency found them few, if any, jobs.

Before investing any money and signing up with a modeling or talent agency:

Modeling scam tip #1. Do your research – Always check the company out with your Better Business Bureau. Some states may require a talent agency or modeling school to be licensed and bonded; confirm the company meets those requirements if applicable.

Modeling scam tip #2. Beware of big promises and high pressure sales pitches – In the modeling world, income is never guaranteed and jobs can be sporadic. Consider it a red flag if the sales pitch promises a lot of jobs and big earnings or uses high pressure tactics to get you to sign up without thinking it through first.

Modeling scam tip #3. Read the fine print and get everything in writing – Take your time and read the agreement or contract carefully, paying close attention to details regarding refunds and your recourse if you are dissatisfied. Make sure that all verbal promises are in the agreement.

Modeling scam tip #4. Get references – Ask for references from other satisfied clients who have a similar background and qualifications.

Modeling scam tip #5. Complain if you’ve been ripped off – If you feel you’ve been misled by a talent or modeling agency, file a complaint with your Better Business Bureau, State Attorney General and the FTC.