Cash-rich seniors are easy targets of financial companies who guarantees false hope of earning 20% per annum. Jon W. James & Associates is one of such financial companies – with less than U$4million in asset but owing investors about US$13million.
According to the Securities and Exchange Commission, about 5 million seniors are victims of various sorts of financial fraud
each year. However, the precise numbers are not clear because not all scams are reported. The estimated reported scams are about 1 reported for every 5 scams that happened.
Karen Liebig of a nonprofit group called the Keep Safe Coalition has been educating seniors about such financial scams that promise high returns. In her example, she quoted salesman who “run errands” for seniors hoping to gain their trust.