Renaissance Asset Fund Accused of Jehovah's Witness Affinity Scam
Affinity scams are a very real issue in our financial industry. This type of fraud typically preys upon members of a group. Examples include church groups, ethnic communities, professional groups, and the elderly. The person committing the fraud pretends to be a member of the group, and then uses this connection to gain investors in the scheme. The trust and friendship of the group members is manipulated and abused.
- That between March 1999 and April 2004, the defendants raised funds for alleged projects that included an outlet mall, a Swiss bank, and an international currency exchange.
- The defendants told their investors that their investments would earn returns of between 10 – 25% over a period of as little as four months.
- The defendants issued quarterly account statements containing fake profits.
- Assuming that their investments were successful, many victims then reinvested their principal and earnings into new projects presented by the defendants.
- Some of these projects were entirely fictitious.
- Other projects that did exist were unsuccessful.
- Most investors never received a return of their principal or any interest.
- Country club memberships
- Car leases
- Retail purchases