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Scams Against Seniors are Growing at Unprecedented Rates
Sarasota, FL: Jack and Jeannetta Mouncey had no life insurance, therefore they were quite concerned about their financial future when Jack suffered congestive heart failure a few years ago and almost died. However, some friends directed them to what they thought to be the answer to their prayers and that was a local insurance company named First Liberty Group that was telling customers they could produce a 7% return on corporate promissory notes every quarter.
In fear that Jeannetta might outlive their savings and they would run out of money, the Mouncey's were encouraged by the high interest rates. As a result, they invested $135,000 of their own money, which emptied their bank accounts.
 Jeannetta, 64, simply wanted to make sure the couple would have a decent income because of Jack being so ill. She knew there was no way she could afford their home on their own, so they invested their money. It was less than a year after beginning their relationship with First Liberty Group that the interest checks stopped coming in and much of the money that they had handed over to this company was nowhere to be found. The sales agent, Fred Howard, disappeared without a trace and the company followed suit soon after when its president was charged with securities fraud and was serving time in an Arizona prison.
Since the year 2000, approximately $350 million dollars has been taken from seniors and that is only the amount that has been reported in investigations. In all reality, the dollar amount is much higher, but it is hard to determine how much higher since many crimes go unreported.
However, authorities worry that this deception will grow because the baby boom generation accounts for approximately 78 million Americans who were born between 1946 and 1964. These people are now already in their sixties or approaching their sixties within the next 10 to 15 years. These baby boomers may be targeted by firms that are legitimate, just like the Mouncey's, to only find that their money will eventually be nowhere within their reach over time.
Some of the recent scams that have involved seniors are:
AmeriFirst Funding is a scam where approximately 600 seniors were targeted for more than $55 million. The money collected by this scam was used to pay for home remodeling, real estate, and garish cars. One of the conspirators in this scam is scheduled to be sentenced later this year in Dallas while the SEC is still investigating another $20 million that is unaccounted for.
The second is American Marketing Insurance Corp and St. Pierre Insurance Agency in which the president of Charlotte county insurance company committed fraud against approximately 100 elderly people for an amount of $2.8 million. This money was acquired over a period of seven years through the sale of promissory notes that were not secure.
The third is Brasota Mortgage Co., which used a pyramid scheme that misappropriated approximately $137 million and involved around 1,800 people. The company collapsed after its founder passed away in 2004. The scandal has caused some of the investors involved to face the possibility of bankruptcy, but it is expected that these victims will receive at least 65 cents for every dollar that they invested.
These are just a few of the past scams that have targeted seniors. For Jack and Jeannetta, their relationship with the friends who referred them to First Liberty is strained, but they are making the best of things since Jack's 2007 diagnosis of lunch cancer. Both are determined to get through the heartache that has been brought upon them by First Liberty Group.
By Ginger Gillenwater
Unfair Business Practices Legal Help If you are a victim of unfair business practices, please contact a lawyer involved in a possible [Unfair Business Practices Lawsuit] to review your case at no cost or obligation.
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