Secretary of State Warns Against Pension Advance Scam

Indiana Secretary of StateINDIANAPOLIS (April 14, 2016) — Secretary of State Connie Lawson issued an advisory recommending pensioners and investors steer clear of pension advance scams.   

“It is deplorable that scam artists have found yet another way to target the most vulnerable among us,” stated Secretary Lawson.  “Unfortunate circumstances put pensioners into a position where they are forced to jeopardize their financial future in order to meet immediate financial demands.  These same scam artists then go on to dupe investors by offering investments in illicit securities comprised of ill-gotten pensions.”  

Pension advance scams are a new take on an old scam. These crooks offer pensioners lump sums in exchange for their future pension payments.  This scam targets individuals who are set to receive large cash entitlements in the form of a pension to be paid out over time.  Due to extenuating and often unforeseen circumstances, potential victims find themselves in a situation where they need access to fast cash.  However, the scam does not stop there.  Scam artists then bundle these cash entitlements and sell them as an investment opportunity.   

“While our office has yet to bring charges against individuals committing pension advance scams, we firmly believe the best form of prevention is education,” stated Securities Commissioner Alex Glass, “Those who suspect they or their loved ones have fallen victim to securities fraud should not hesitate to contact the Secretary of State’s office at (317) 232-6681.” 

The full investor advisory can be found here: http://www.in.gov/sos/indianamoneywise/files/Pension-Advance-_IN.pdf

 

About Brian Scott

I play on the radio from 7 am -1 pm weekdays on 98.9 FM WYRZ and WYRZ.org. Follow me on twitter @WYRZBrianScott or e-mail me at brian@wyrz.org.

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