Non-Profit Fraud, Kareem Abdul-Jabbar’s Charity Scam?
Last month the web was inundated with news of allegations made against Kareem Abdul-Jabbar’s charity, the Skyhook Foundation based out of Long Beach, CA. In 2009 when the foundation opened, Mr. Abdul-Jabbar said “I have decided to open up the Skyhook Foundation to improve people’s lives through sports and education because my life could not have been what it is without sports and education”. Now, while Mr. Abdul-Jabbar is not listed as a defendant, his charity is said to be a front to scam people, and only benefits the members of the board. The Urban Daily reported that Mr….
Fraudsters Targeting YOU! Affinity Fraud Part 3 of 3
How to Avoid Affinity Fraud Part 3 of 3 Things to keep in mind: – If it sounds too good to be true, it is. – Never allow someone’s rhetoric to overpower your common sense. – Take a few days to think about and examine any investment decision. – A “best practice” procedure is to solicit a third party professional’s expert opinion. To watch the 3-part video on you tube: http://www.youtube.com/watch?v=vUv4dDavC6U&list=PLDF985F76B59B68E7&index=1
Fraudsters Targeting YOU! Affinity Fraud Part 2 of 3
How is Affinity Fraud Accomplished? Typically a fraudster embodies or personifies ideals held by the group to be very advantageous. In some situations this could be a member of poor community that shows outward signs of success, such as rolling into the community in a Bentley, or an older individual that boasts great success in their “multi-million dollar” portfolio to a group of senior citizens. According to Perri and Brody (authors of article referenced below), an individual (the fraudster) uses projection bias- a psychological defense mechanism for reducing personal anxiety to transfer his or her attributes to other people in…
Fraudsters Targeting YOU! Affinity Fraud Part 1 of 3
What is Affinity Fraud? I recently stumbled upon a 3-part video on Affinity Fraud, aptly titled Affinity Fraud: Preying on Those Who Pray. Every year, billions of dollars (in the U.S. alone) are stolen from unsuspecting victims of this kind of fraud. http://www.youtube.com/watch?v=vUv4dDavC6U&list=PLDF985F76B59B68E7&index=1 Simply put, although there’s nothing simple about it, affinity fraud occurs when individuals are victimized by someone who was able to assimilate to their “culture” in order to manipulate their financial resources. Such fraud has been called “fraud in the name of God” for the fact that congregations belonging to churches have historically been a target of…
Former Detroit Mayor Back in the News
Former Detroit Mayor Back in the News In June of 2011 I wrote about former Detroit Mayor Kwame Kilpatrick, who has been back in the news, for a conviction on a plethora of charges, including racketeering, fraud, and extortion. He was found guilty of 24 of the 30 charges brought against him. Kilpatrick was joined in court along with two co-defendants- his father, Bernard Kilpatrick, and Bobby W. Ferguson, a city contractor. The New York Times reported nicely on this matter. Called into question in the weeks preceding the verdict, Kilpatrick’s spending habits were brought to light, including luxury cars…
Debt Collection, or Lack Thereof
Debt Collection, or Lack Thereof As reported recently by The Long Beach Post, according to an audit of the City’s Business Relation Bureau that spanned two years, $2.4 to $2.6 million in outstanding business license accounts have not been collected by the City of Long Beach. http://www.lbpost.com/business/2000001889-city-auditor-2-4-to-2-6m-in-delinquent-business-license-accounts-uncollected#.UTTbYldZ_Q8 Residents are fuming at the lack of tenacity through which the city (has not) collected on the debts, meanwhile taxes and fees continue to rise. City Auditor Laura Doud noted a lack of “comprehensive policies and procedures for the collection process” and that there “does not appear adequate oversight is in place.” Statistically…