CA Issues Warning on Investment Scam

Share this article:
California authorities are warning consumers against an investment scam that uses cold calling to get consumers to put money into medical imaging centers.


Boiler-room operators are calling consumers to offer unrealistic promises of double-digit returns -- up to 45 percent -- on investments in the centers, according to the California Corporations Commission. The scam artists then skim off the top of the promised return and more in sales commissions, the agency said.


In one case, the California Department of Corporations filed a civil suit against an operation that assured investors that no more than 7 percent of their money would be used for sales commissions. In fact, the operators took as much as 47 percent of the investors' money for their sales commissions, according to the department.


The department is investigating other, similar cases involving $3 million to $5 million each.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

Hawk Search Widens its Global Reach

Hawk Search Widens its Global Reach

Hawk Search's solution offers support for more than twice as many languages as other site search providers, according to the company.

Candidates Offer Change In The Form of Targeting

Candidates Offer Change In The Form of Targeting

A campaign for Ben Carson raised $2.8 million despite his lack of cooperation.

Target Names Retail Veteran Brian Cornell as CEO

Target Names Retail Veteran Brian Cornell as CEO

He leaves the top job at PepsiCo Foods to take the spot vacated by Greg Steinhafel in the aftermath of the data breach.