To: Neocon who wrote (168783 ) 8/8/2001 9:39:45 AM From: Mr. Palau Read Replies (1) | Respond to of 769667 >>Surely the Reverend Jackson has better things to do<< Yeah, maybe he could bilk true believers, as others have done in the name of God in recent years: Religion-Based Investment Scams Rising -Regulators By Peter Ramjug WASHINGTON (Reuters) - Scams using religion as a lure to get people to invest money took in about $1.8 billion over the last three years, and swindlers are becoming more prevalent and more sophisticated, state securities regulators said on Tuesday. Classified by regulators as ``affinity fraud,'' the process involves using someone's religion to gain their trust and, ultimately, their money. ``I've been a securities regulator for 20 years and I've seen more money stolen in the name of God than in any other way,'' said Deborah Bortner, president of the Washington-based North American Securities Administrators Association (NASAA) and the securities director for the state of Washington. ``The con artist makes faith in God synonymous with faith in the investment scam,'' Bortner told a news conference where investors also described their experiences. One of the victims, Forrest Bomar of Palestine, Texas, said, ``I'm embarrassed to say this, but I never asked for an annual report, I never asked for an audit, I never called anyone. I never had any fear.'' NASAA said officials in 27 states have taken legal action against hundreds of companies and individuals that used religious or spiritual beliefs to gain the trust of more than 90,000 investors across the nation before taking their money -- about $1.8 billion of it over the last three years. In contrast, a 1989 survey co-sponsored by NASAA found that only 15,000 investors had lost more than $450 million in such scams in the previous five years. The increase in such fraud is likely related to investors' looking for an alternative to the skittish stock market and scams that offer above-market returns, Bortner said. Bomar lost money in a scheme that drew in 13,000 people, including about two dozen investors from as far away as Hungary, Singapore and Taiwan. ``In 1994, I began to look for fixed-rate income because I had become tired of the ups and downs of the stock market,'' he said. When he received a postcard outlining returns of 6.75 percent and pledging to ``do the work of the Lord,'' he called the company, the Baptist Foundation of Arizona. The foundation sent a representative to Bomar's home. COURT ACTION Mark Sendrow, director of securities for the Arizona Corporation Commission, said the Baptist Foundation of Arizona took in a total of $590 million, using a maze of shell corporations in a Ponzi scheme, before it was shut down in August 1999. Ponzi schemes depend on the solicitation of new investors to pay existing ones. NASAA said three people related to the Baptist Foundation pleaded guilty to defrauding investors in May and have agreed to cooperate in an investigation of five others indicted on 32 counts each of theft, fraud and racketeering. In addition, the foundation's auditor, Arthur Andersen, is involved in several court cases brought on behalf of investors and by securities regulators, Sendrow said. ``We think they ignored a lot of red flags,'' he said. In another case, Greater Ministries International Church raised about $580 million between 1993 and 1999 by promising to double investors' money through ``divinely inspired'' investments in the currency market and gold, silver and diamond mines. In a video of a Greater Ministries meeting shown by NASAA at the press conference, Greater Ministries founder Gerald Payne promoted the investments by comparing investors' money to the biblical story of the multiplying loaves and fishes. Payne was sentenced on Monday afternoon in federal court in Tampa, Florida, to 27 years in prison for fraud and conspiracy, according to Joseph Borg, Alabama's securities chief. The scams targeted by the regulators do not include church bonds, which require substantial disclosure of how investor money will be used.dailynews.yahoo.com