Reddick,Trenna (2007) FDLE Announces the Arrest of Manatee Securities

Broker and Insurance Agent for the Theft of $6.5 Million in Client Investment
Funds. Retrieved From:
https://web.archive.org/web/20100913022142/http://www.fdle.state.fl.us/Conte
nt/News/November-2007/FDLE-Announces-the-Arrest-of-Manatee-Securities-
Br.aspx

Krikorian, Michael & Bernstein, Sharon (2003) Van Nuys Man Accused of
Defrauding Armenian Investors Retrieved from:
https://www.latimes.com/archives/la-xpm-2003-feb-08-me-garian8-story.html

Alpert, Lukas (2016) INVESTOR FUROR OVER ‘$50B SCAM’. Retrieved from:
https://nypost.com/2008/12/13/investor-furor-over-50b-scam/
Austin, Dave (2004) In God We Trust: The Cultural and Social Impact of Affinity Fraud in the African
American Church. Retrieved
from:https://digitalcommons.law.umaryland.edu/cgi/viewcontent.cgi?article=1069&context=rrgc

Office of the Investor Education and Policy - SEC (US) Affinity Fraud.
Retrieved from: https://www.sec.gov/investor/pubs/affinity.pdf

SEC (2003) SEC News Digest - Issue 2003-28. Retrieved from:

https://www.sec.gov/news/digest/dig021103.txt
FBI (2017) Affinity Fraud
Retrieved from: https://www.fbi.gov/news/stories/beware-of-affinity-fraud
Brody,R. & Perri, F.(2011) Perri, F. (2011). BIRDS OF THE SAME FEATHER: THE DANGERS OF
AFFINITY FRAUD. Retrieved from:
https://www.academia.edu/1636858/BIRDS_OF_THE_SAME_FEATHER_THE_DANGERS_OF_A
FFINITY_FRAUD

Punongbayan, JC (2019) Kapa Ministry: A symptom of poor financial inclusion. Retrieved

from:https://www.rappler.com/thought-leaders/234569-analysis-kapa-community-ministry-symptom
-poor-financial-inclusion

According to the U. S. Securities and Exchanges Commission, affinity fraud refers

to investment scams that prey upon members of identifiable groups, such as religious or ethnic
communities, the elderly, or professional groups. The fraudsters who promote affinity scams
frequently are - or pretend to be - members of the group. These scams exploit the trust and
friendship that exist in groups of people who have something in common. Because of the tight-knit
structure of many groups, it can be difficult for regulators or law enforcement officials to detect an
affinity scam.

Cases for each “affinity” groups are as follows:

In the state of Utah, USA, Special Agent Michael Pickett states that they are investigating $2 billion
dollars worth of money done in fraud usually due to the high level of trust in the Mormon community.

Fraudsters also target communities of certain ethnic origins like in the case for Armenian American
wherein they lose more than $19 million due to affinity fraud to Michael Garian from 1997 to mid
2001. Also according to the U.S. Federal Trade Commission on its report in 2004, 24% of African
Americans falls prey to affinity fraud.
In canada, a community of Cambodian immigrants was victimized by James
Bunchan and Seng Tan with the amount of $30 million from more or less 400
victims.

In the Philippines, KAPA ministry offers 30 % returns of an investment

“donation” of Php 10, 000.00 or more which are very indicative of an
investment fraud or scam to over 50, 000 members.

Advance fee fraud

This fraud refers to schemes where an investor is required to pay

up first in advance for a fee, a tax or for a commission which usually
promised to be repaid later on.

A common example of these are the so called “419 advance fee fraud”.
It is the act of obtaining property or money by false pretence wherein
it present an opportunity to make money but giving a certain amount first
to try to transfer someone or something out from Nigeria. The scam is done
online through email.Over 94.7 billion dollars were reported losses in
the U.S alone from 2006-2013 and millions of people worldwide are being
victimized according to the report by Ultrascan Advance Global
Investigations in 2013. Even to this year, over 700,000 dollars amount
are being scammed through this method.

AGI(2013) Ultrascan AGI 419unit - 419 Advance Fee Fraud Statistics

2013 Retrieved from:
https://www.ultrascan-agi.com/assets/files/Pre-Release-419_Advanc
e_Fee_Fraud_Statistics_2013-July-10-2014-NOT-FINAL-1.pdf

Leonhardt, M. (2019) ‘Nigerian prince’ email scams still

rake in over $700,000 a year. Retrieved from:
https://www.cnbc.com/2019/04/18/nigerian-prince-scams-still-r
ake-in-over-700000-dollars-a-year.html

Binary Options fraud

According to the U. S. Securities and Exchange Commission, It is a

type of options contract in which the payout depends entirely on the
outcome of a yes/no proposition, typically related to whether the price
of a particular asset—like a stock or a commodity—will rise above or
fall below a specified amount. It is done mostly in the Internet through
its websites.

In 2011, the IC3 of the FBI received 4 complaints with reported lost
of more than $20,000. Until this year, the IC3 received more complaints
with millions of dollars that reported as loss. In other countries in
Europe, their fraud complaints comprises 25% of the total fraud
complaints.

FBI(2017) Binary Options Fraud. Retrieved from:

https://www.fbi.gov/news/stories/binary-options-fraud

SEC (2019) Binary Options and Fraud. Retrieved from:

https://www.sec.gov/investor/alerts/ia_binary.pdf

High Yield Investment Fraud

https://www.cl.cam.ac.uk/~rnc1/orchestrated.pdf

McCullagh, D. (2005) Lawsuit alleges 'online currency' scam.

Retrieved from:

https://www.cnet.com/news/lawsuit-alleges-online-currency-scam/

SEC (2012) Press Release 2012-160 Retrieved from:

https://www.sec.gov/news/press-release/2012-2012-160htm

It is a fraudulent investment scheme that intents to deliver unusually

high returns in investment with little or no risk in a time frame of a
week, a month or a short amount of time. They are run by unregistered
investments by unlicensed persons.

Examples of it are: (1) Zeek Rewards by Paul Burks that offers

investment opportunity with earned returns of 1.5% per day and members
are advised to let their gains be compounded and recruit newbies to
increase their returns. The company boosted into $600 million through its
1 million members. The US-SEC immediately took action before its
collapse.(2) OSGold by David Reed wherein it offers through the internet
high yield programs with a promise of 30%-45% monthly returns.(3)
Colonyinvest, wherein it cheated 50,000 Thai investors 5 billion baht
through the internet.

Internet and social media fraud

 SEC (2019) Internet and Sociam Media Fraud. Retrieved from:
https://www.investor.gov/protect-your-investments/fraud/types-fra
ud/internet-social-media-fraud

FBI (2017) Internet Fraud: Trends & Insights. Retrieved from:

https://www.nmb-t.com/sites/heartland/files/Internet_Fraud_Trands
_and_Insights_Com.pdf

Consumers International (2019)Social Media Scams. Retrieved from:

https://www.consumersinternational.org/media/293343/social-media-
scams-final-245.pdf

Basically, all investment fraud conducted in the internet are examples

including in the social media like facebook, twitter, online
newsletter,online bulletin boards and chat rooms,and the likes.Its common
types are non-payment/non-delivery, misrepresentation, business email
compromise, tech support fraud, phishing, malware, ransomware, virus,
etc.

In the US from 2013-2017, there is a total of $5.52 Billion total losses

with 1,420,555 total complaints. And in the data provided by Consumers
International, Australians lose a total of 42.2 billion Australian
dollars from 2015-2018. Since there is a growing number of internet or
social media user, the amount and victimization will grow also.

Microcap fraud

According to Bukh Law Firm, it is a common type of financial fraud

and a form of market manipulation because the microcap market or
over-the-counter market is comprised of companies with low stock prices,
acquiring large volumes of these stocks is easy and inexpensive. Many
schemes involve purchasing penny stocks in the microcap market, heavily
marketing the stocks so their price increases significantly, then selling
the stock at the higher price. After the stock is dumped, the marketing
efforts end, leaving the other investors with shares that plummet in the
price.

In the US, the US SEC on June 7, 2011 have suspended 17 microcap stocks
companies with suspicious accuracy and adequacy in the providing trading
informations. And on the year 2018, the US SEC froze assets of more than
50 microcap companies due to illegal sales of stocks.

US SEC(2011)SEC Suspends Trading in 17 Companies in Proactive

Effort to Combat Microcap Stock Fraud. Retrieved from:
https://www.sec.gov/news/press/2011/2011-120.htm

US SEC(2018) SEC Halts Microcap Fraud Scheme Orchestrated Through

International Accounts. Retrieved from:
https://www.sec.gov/news/press-release/2018-228

Bukh Law Firm (2019) Microcap (Penny Stock) Fraud. Retrieved from:
https://www.nyccriminallawyer.com/fraud-charge/securities-fraud/micro
cap-penny-stock-fraud/

Ponzi

Originated from Charles Ponzi in 1919, wherein it offers very minimal

or no risk investment. It generates returns for older investors by
acquiring new investors funds.

In the year 2009 in the US, it was dubbed as the “THe year of the
Ponzi Scheme” because of the Bernard Madoff, investment manager at Wall
Street, who rake nearly $20 billion from his ponzi scheme.

In the US alone, billions of dollars are being reportedly loss

according to the database of Jordan Maglich, an attoney in Florida, USA.

The KAPA ministry scam is a ponzi scheme as well since it provide

returns of old investors by getting the ‘donation’ of new members
ranging from Php 5,000.00 as minimum to 1 million as maximum.

Manlapaz, Irish (2019) Kapa Ministry Scam Scheme. Retrieved from:

https://ph.theasianparent.com/kapa-ministry-scam
Chen, James (2019) Ponzi Scheme. Retrieved from:
https://www.investopedia.com/terms/p/ponzischeme.asp

Maglich, Jordan (2014) A Ponzi Pandemic: 500+ Ponzi Schemes Totaling

$50+ Billion in 'Madoff Era'. Retrieved from:
https://www.forbes.com/sites/jordanmaglich/2014/02/12/a-ponzi-pandemi
c-500-ponzi-schemes-totaling-50-billion-in-madoff-era/#a07af9c69253

Pyramid

It an investment fraud resembling a ‘pyramid’ shaped or structured

business model. It makes its profits from recruiting new members by paying
a certain amount where old members especially the direct recruiter and
the members above them gets a share from that amount

According to the Scam Watch, an online resource that assist consumers,

small businesses and industry in understand and preventing scams, states
that over over $1.7 million are self-reported losses from
2016-2019.Companies like Amway, Herbalife, Mary Kay, Nu Skin
Enterprises and USANA Health Sciences are being sued for conducting
pyramid scheme some of them paid fines of $100 million dollars and over.

Bloomenthal, Andrew (2019) What is a Pyramid Scheme? Retrieved from:

https://www.investopedia.com/insights/what-is-a-pyramid-scheme/

ACC (2019) Pyramid Scam Statistics. Retrieved from:

https://www.scamwatch.gov.au/about-scamwatch

Elliott, Megan (2017)5 Huge Companies Accused of Being Pyramid Schemes

Retrieved from:
https://www.cheatsheet.com/money-career/huge-companies-accused-of-bei
ng-pyramid-schemes.html/

Prime bank

https://www.sec.gov/divisions/enforce/primebank/howtheywork.shtml

A form of investment fraud that offers you ‘exclusive’ investment

program involving buying and selling of bank instruments allegedly
endorsed by World Bank, IMF, Federal Reserve and other international
central banks.. Fraudsters uses complex, intelligent, official terms to
convince the investor.

According to Shah Gilani, that an estimated loss of $10 billion from

Americans accurate as of 2009 due to Prime bank scam.Until this year of
2019, many are still victims of prime bank scams like in the case of Peter
Baker of Prestige Global Trading Ltd., Elizabeth Oharriz of Diversified
Initiatives Consulting & Logistics Inc. And Sienna Business Group Inc.
who victimized Floridan and Georgian residents of over $2.2 million.

US SEC (2019) SEC Charges Perpetrators of Prime Bank Investment

Scheme for Defrauding Investors. Retrieved from:
https://www.sec.gov/litigation/litreleases/2019/lr24491.htm

Gilani, Shah (2009) Anatomy of a Scam: This "Prime Bank Program"

Has Already Cost Investors Billions. Retrieved from:
https://moneymorning.com/2009/10/26/financial-scams-3/
 US SEC(2019) How Prime Bank Frauds Work. Retrieved from
https://www.sec.gov/divisions/enforce/primebank/howtheywork.shtml

US SEC(2019) “Prime Bank” Investments. Retrieved from:

https://www.investor.gov/protect-your-investments/fraud/types-fra
ud/prime-bank-investments

Promissory notes

A promissory note is a form of debt – similar to a loan or an IOU

– that a company may issue to raise money. Typically, an investor agrees
to loan money to the company for a set period of time. In exchange, the
company promises to pay the investor a fixed return on his or her
investment, typically principal plus annual interest. While promissory
notes can be legitimate investments, those that are marketed broadly to
individual investors often turn out to be scams.(US, SEC)

For example, the SEC found fraudsters that purchased and used mailing
lists to target elderly individuals in north and west Texas for
investments in so called "guaranteed" and fully-collateralized
"promissory notes." In order to solicit senior citizens, the fraudster
disseminated literature designed to alarm the elderly recipients with
claims that the Texas probate process was lengthy, complicated and
expensive and to suggest that they could provide "estate planning
services," "living trusts" and "revocable trusts" to overcome the
identified problem. When the targets of the mailing responded, they were
urged by the fraudsters to liquidate legitimate, safe investments, to
withdraw IRA monies and to invest in high risk investments in order to
achieve a higher rate of return. Investors were told their investment
would be used to fund business ventures, including short-term,
high-interest notes, bank cards, resort projects and short-term, interim
mortgage loans, all of which did not exist. Instead, investor monies were
used by the fraudsters to make interest payments to earlier investors
("Ponzi payments"), pay exorbitant sales commissions, purchase several
parcels of real estate, acquire and operate a pawn shop, make payments
on personal credit cards and to construct a residence and lake home. [See
SEC v. Gary Landon Davenport, et al., Case No. 7:99-CV-185-R, USDC, NDTX
(Wichita Falls Division)](Forkey, Russell, 2018)

Forkey, Russell (2018) Promissory Note Scams. Retrieved from:

https://www.forkeylaw.com/Elder-Abuse-Financial-Fraud/Promissory-
Note-Scams.shtml

US SEC(2009) Broken Promises:Promissory Note Fraud.Retrieved from:

https://www.sec.gov/investor/pubs/promise.htm
P and D

Pump and dump schemes are investment fraud involves penny stocks or
stocks sol on the microcap market and usually involves multiple parties
working together to commit fraud against investors. It involves the
purchase of shares of stock with the intention of artificially driving
the price of that stock. A low value stock sold on the over-the-counter
market (the microcap market) is chosen. Large volumes of the stock are
purchased at rock bottom prices. The company and its stock shares are
then heavily marketed and promoted. False reports may be prepared
touting the company’s expected success or the value of the
stock. Brokers may call clients and push the stock; fake posts may be
made in online investment chat rooms; and a host of other techniques may
be used to convince investors to buy the stock.(Bukh Law Firm, 2018)

Bukh Law Firm (2018) Pump and Dump Schemes. Retrieved from:
https://www.nyccriminallawyer.com/fraud-charge/securities-fraud/p
ump-and-dump-schemes/

Examples of it is by Gregg Mulholland who generated more than $250 million

fraudulent profit using pump and dump scheme wherein he manipulated shares
of more than 40 U.S. companies including Cynk Technology whose shares
rocketed to 24, 000%. (McCoy, 2016)

According to Carson Block on 2015, several Hong Kong companies share

prices are being manipulated by over 500 % in the past years commonly done
in the final 30 minutes of a trading day.

Cwalinski, Kristin (2015) Carson Block: The biggest pump and dump
in history. Retrieved from:
https://www.cnbc.com/2015/06/02/-biggest-pump-and-dump-in-history
-carson-block.html

McCoy, Kevin (2016) Guilty plea in $250M pump-and-dump scheme.

Retrieved from:
https://www.usatoday.com/story/money/2016/05/09/broker-pleads-gui
lty-250m-pump-and-dump-scheme/84138184/