Affinity Fraud

Most people who have lost money in ponzi schemes have some element of affinity with one another. Once the fraudster has convinced a small number of members of the group (often the key members) to invest in a fraudulent scheme, others from within the group are more likely to follow. Bernie Madoff provides perhaps the most shocking example.

Many groups such as churches, social groups, and clubs collect funds, dues, and fees. Non-segregation of duties, loose controls, and, above all, the deep trust that members of the group have for one another create a serious fraud risk. Motives certainly vary, but for a desperate group member, these conditions provide the ideal opportunity for fraud.

Often, the impartiality of a professional investigation is needed to help victims see the truth for what it really is. Whether your group wants to pursue criminal or civil recourse, determine the extent of the losses, identify the culprit, or simply bring closure to a difficult situation, Clarium Fraud & Compliance Solutions can help. Clarium will professionally and sensitively:

• investigate instances of suspected affinity fraud within your group,
• conduct fraud prevention and awareness training, and
• assist with litigation support.