WARNING: CD and Promissory Note scams are rampant
By: Scott L. Starr
Yet another Certificate of Deposit (CD) scam has cropped up, this time in Florida, where Federal prosecutors have charged Dennis Sotnikov from Florida with a 30 million dollar scheme which caused investors to purchase fake CDs by the use of fake websites designed to look like legitimate banks. According to reports, about 70 investors were hoodwinked into putting approximately 30 million dollars into non-existent CDs with the promise of higher than market rate returns.
Starr Austen & Miller has represented hundreds of defrauded investors in the past on schemes similar to this. At present, Starr Austen & Miller is representing a group of investors in Indiana who purchased promissory note like investments from local insurance agents with the bankrupt Woodbridge Mortgage Investment Funds.
All of these scams use an identical hook to draw in unsuspecting investors: they promise much higher rates of return than are otherwise being offered on the open market. Frequently these scams promise “guaranteed” interest at the rate of 10%. They always promise interest rates at multiples of what bank certificates of deposit are currently paying.
Don’t be scammed! If you are promised an interest rate that appears out of line with market rates, then it is too good to be true. These scams will be perpetrated on the innocent and unsophisticated forever. If you or a loved one has been caught up in such a fraudulent scheme, contact Starr Austen & Miller for a free consultation to see if we can help you get your money back.