Investment fraud lawyers are currently investigating claims on behalf of elderly seniors who have been the victim of affinity fraud or other investment scams. Affinity fraud is an investment scam that targets an identifiable group such as seniors, ethnic communities, professional groups, religions groups, etc. In one recent claim, Gary C. Snisky reportedly targeted and defrauded more than 40 seniors in a scam that cost these individuals $3.8 million. According to the allegations, Snisky mostly targeted retired annuity holders, many of whom lived in Colorado.
The charges were filed by the Securities and Exchange Commission and claim that Snisky used insurance agents to sell Arete LLC interests, which he claimed were safer and more profitable than annuities. Furthermore, the SEC’s claims allege that Snisky told investors that their funds would be used to purchase government-backed agency bonds at a discount by eliminating middlemen fees, which would then be used for overnight banking sweeps. However, he allegedly misappropriated around $2.8 million, using these funds to pay commissions and mortgage payments. According to securities arbitration lawyers, scams like this are far too common and, unfortunately, many investors are either unaware or too embarrassed to come forward.
Reportedly, Snisky described Arete LLC as an “annuity plus” with up to 7 percent in guaranteed annual returns. Furthermore, he allegedly claimed that investors could earn interest and take principal from the investment without penalty, even after 10 years. According to the SEC’s allegations, Snisky stated that the investments were safe, exhibited falsified investor account statements that showed earnings to staff and drafted documents to be used as offering materials by salespeople.
Unfortunately, seniors are common targets for fraud because they often have sizeable savings or retirement funds, according to investment fraud lawyers. In addition, health problems, mental issues and a trusting disposition are other reasons they are targeted by fraudsters.
If you or a loved one has been the target of elder financial abuse through affinity fraud or other investment fraud schemes, you may be able to recover losses through securities arbitration. To find out more about your legal rights and options, contact a securities arbitration lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.