Representative Mike Sparks (R-Smyrna) announced that House Bill 2655 was transmitted to the Governor for his signature. The bill, which passed unanimously in the House and the Senate, creates a new Class A felony theft in Tennessee State law and allows for the State to aggregate the value of stolen property of individuals to reach the felony benchmark.
This bill addresses a particular form of theft known as affinity fraud which is a growing problem in the State, according to law enforcement. Affinity fraud refers to investment scams that prey upon members of particular groups, such as religious organizations, the elderly or even professional groups. Typically, the offender will pretend to be or sometimes are members of the group. They gain the trust of the members and often will enlist the unknowing aid of respected members of the group to spread the word about their “investment opportunity.”
“These scams exploit trust and friendships. I appreciate the Tennessee Bureau of Investigation and the Attorney General’s offices being assertive in efforts to fight affinity fraud and to protect life savings of our citizens and particularly seniors in our state. I also am thankful for the bipartisan support of the General Assembly for this legislation against an increasing threat,” says Representative Sparks.
Helpful tips to avoid affinity fraud and minimize risk of the loss of your assets:
- Always check out everything, no matter how trustworthy the person is who brings the investment opportunity to your attention. Never make an investment based solely on someone else’s recommendation.
- Do not fall for investments that promise profits that are far above the typical market returns or a “guaranteed” return. Be extremely wary of any investment that purports to have no risk. The promise of fast and high profits with little or no risk is a classic warning sign of fraud.
- Avoid investing in anything that cannot be put in writing, and do not be pressured into making a hasty decision. Those who engage in this type of fraud are increasingly using the internet to target their intended victims. If you receive an unsolicited email from someone you do not know that promises a “can’t lose” investment, pass it up and report the message to the authorities.
“These tougher penalties provide an important tool for law enforcement in cases of affinity fraud, where the elderly are often victims, as well as ponzi schemes, and other white collar crimes,” said Attorney General Bob Cooper.
This legislation, once signed by the Governor, will take effect July 1, 2012.