Regulators Warn of Ethnic-Group Scams

Minorities should be aware of growing financial scams in which swindlers who belong to an ethnic or religious group prey on the loyalties of group members, state securities regulators said. Regulators are cracking down on such scams targeting minority and religious groups and are warning that these schemes may be on the rise. A group of 14 states, including California, said it has begun investigating or has taken action against people who have preyed on Asians, Latinos, blacks and several religious groups. Called “affinity group fraud,” these scams are becoming more common as the number of new immigrants is at a level not seen since early this century. In California, state officials are investigating more than 20 cases of commodity dealers targeting Asian communities in the Los Angeles area with bogus foreign currency and precious metals investments. The group advised investors to check with state regulatory agencies before investing.