Wednesday, July 20, 2011

Report: Affinity frauds increase in economic downturn

From the New York Post:
Maybe it's the bad economy. Maybe it's people's desire to look past Wall Street and invest with someone they believe they can trust.

But whatever the reason, swindles of friends by friends are on the rise -- so much so, that prosecutors have coined a separate name for it: Affinity frauds...Savvy people who would never dream of investing with a cold-call telephone huckster will hock their homes and ruin their credit for a "friend" with an honest face and a good idea....

Many “friendly” business offers are legitimate. However, even a legitimate business deal can go sour if one or both parties do not realize what they are getting into.

The best way to avoid fraud, or other legal complications, is to consult a qualified attorney of your own choosing before entering into any contract or making any sizeable investment, even with a friend or family member.