Colorado Attorney General John Suthers and
Colorado Securities Commissioner Fred Joseph announced on August 28, 2009 that
Douglas County District Court Judge Vincent White has sentenced Mark H. Polunci
to seven years in prison for his involvement in a Ponzi scheme.
Polunci, indicted in October 2008, pleaded guilty
to one count of securities fraud, a class-three felony, in April. According to his indictment, Polunci
acquired $1.3 million from six investors between January 2005 and August 2006
by offering his victims high rates of return on their investments, ranging from
10 percent to 20 percent. During that
time, however, Polunci simply used other investors’ deposits to pay “interest”
on the investments. Polunci also failed
to disclose his financial history and other facts about the “investment
opportunity” he had pitched to his victims.
“Surveys have shown that those most likely to fall
for investment scams are often those who either known or think they know the most
about investments,” Suthers said.
“Whether you are a day trader or new to investments, there are several
simple steps you can take to protect yourself from falling victim to Ponzi
schemes and other scams. Taking the
time to ask the right questions at the time you are pitched an investment
opportunity could save you and other possible victims of investment fraud
hundreds if not thousands of dollars.”
The Better Business Bureau of the Southwest would
like to offer these tips to keep you safe while investing.
- Consumers should beware of investment opportunities
that are offered for a limited time only. Legitimate investment opportunities should not require a decision
in a matter of hours.
- If it sounds too good to be true, it probably is:
Investments offering large returns with virtually no risk simply do not exist.
There are no sure things in the investment world.
- If the person pitching you on an investment is
unregistered with FINRA that should send up a red flag. You can check out
brokers: http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/index.htm.
- When a broker or person pitching you on an investment
cannot describe how a fund or investment product works, that, too, should be a
warning sign. Someone selling you an investment product or opportunity should
be able to clearly describe how it works and the associated risks.
- An investment should always have accompanying
documentation. If an investment product or opportunity does not have
documentation or a stock ticker symbol, it might be a scam.
- Always check out the company’s Reliability Report with
your local BBB at www.bbbsw.org
or by calling (800-873-2224)
For more information visit SaveAndInvest.org or
contact the FINRA Investor Education Foundation. If you believe you have
been defrauded, you should contact the Securities and Exchange Commission
Office of Investor Education and Advocacy (800-732-0330).
[PRINTER FRIENDLY VERSION]
