Posted on January 7, 2015
Affinity frauds are especially devastating because of the inherent bonds of trust that exist within the victimized community. Fraudsters count on that affinity to promote their scheme. Greed, trust, friendship, lack of due diligence or a sober second thought combine in a disastrous conflagration of financial ruin, friendships destroyed, and as this case demonstrates, suicide. The Washington Examiner ran an article about the recent investigative report released by the US Dept. of Justice regarding the affinity Ponzi scheme which duped over 100 employees of the US Drug Enforcement Administration (DEA). Over the course of nearly 20 years investors sunk $34 million into a fraudulent investment scheme operated by Kenneth "Wayne" McLeod. The scheme finally collapsed when a retired DEA employee unsuccessfully tried to withdraw his investment. An investigation ensued and McLeod killed himself after leaving a confession note.
Like any affinity fraud scheme there were a few red flags that seem obvious now, maybe even then:
If you are worried that you or somebody you know might be the target of an affinity fraud scheme them you should consider getting some outside help. Don't minimize your suspicions, act on them. Clarium Fraud and Compliance Solutions has the skills and expertise to conduct a detached professional investigation. Contact Clarium today.