Which is worse?

[mickeyd]

Is defrauding your own parents worse than victimizing churches and charities? I don't think we need a poll for this one.

A former New Jersey financial advisor has pleaded guilty to defrauding his parents out of more than $1.3 million while serving as their financial advisor, New Jersey Acting Attorney General John J. Hoffman announced today.
Hugh R. Hunsinger Jr., 49, of Pine Brook, N.J., pleaded guilty Tuesday to second-degree theft in a plea bargain. As part of the deal, the attorney general will recommend that Hunsinger be sentenced to three to five years in state prison and that his insurance producer license be suspended for five years. In addition, Hunsinger has agreed to pay his parents $1.3 million.

Former N.J. Financial Advisor Steals From Parents

A Vermilion, Ohio, financial planner was sentenced to 17.5 years in prison and ordered to pay more than $4.4 million in restitution for financial crimes that victimized nearly 100 clients, including churches and charities, the U.S. Attorney for the Northern District of Ohio announced last week.
Richard A. Zakarian, 48, pleaded guilty earlier this year to two counts each of wire fraud and mail fraud and one count of making and subscribing false income tax returns. He was sentenced in federal district court in Cleveland.

Ohio Financial Advisor Gets 17.5 Years In Prison For Fraud

 

[modhatter]

Loving parents and loving children would find this hard to imagine. However, it does happen. My own father was a first class con man. He tried and successfully defrauded me, and I lost over $350,000 to him. It was the biggest shock of my life. Never in a million years would I have thought it to be possible.

Look at wealthy movie stars and other wealthy high profile people, who have lost mega millions to their "trusted" managers, who were thought to be their best friends as well. Very wealthy people develop Trust issues for good reason.

When it comes to money, not only will loving people in your life be capable of defrauding you, they will also as we know from 48 Hours, kill for the right sum.

But when it comes to immediate family, it is more unthinkable to most. Hence the greater shock when it occurs.

 

[Walt34]

I used to do fraud investigations and was only a little surprised at how often that happens in families.

 

[frayne]

FAs are going to give lawyers a run for their money before too long.

 

[pb4uski]

I feel so sorry for the parents - I suspect the loss of trust in your child overwhelms the loss of the money.

It seems like the first FA got off easy (3-5 years in prison, loss of license for only 5 years - WTF!) compared to the second FA (17.5 years in prison).

 

[Bestwifeever]

I used to do fraud investigations and was only a little surprised at how often that happens in families.

It is probably easy to rationalize that it's one's future inheritance anyway so it's "okay" to take it over a little early and mom and dad won't prosecute their own kid, would they? Really awful.

And the crooked FA who defrauded 100s of clients is violating every promise ever made to at least pretend to put their interests first. Also awful.

Hang them all.

 

[MichaelB]

I used to do fraud investigations and was only a little surprised at how often that happens in families.

I recall reading somewhere that >95% of fraud most likely to affect an individual is committed by a family member. Having seen it first hand and also with close family friends that % is easy to believe. It puts a whole new dimension on estate planning and such.

Hang them all.

+1

 

[brett]

The fastest growing fraud is Affinity fraud. It often occurs within faith groups. A respected member promotes a Ponzi scheme-either for his/her own benefit of for the 5 percent kickback. Many of these go unreported.

 

[Ready]

Loving parents and loving children would find this hard to imagine. However, it does happen. My own father was a first class con man. He tried and successfully defrauded me, and I lost over $350,000 to him. It was the biggest shock of my life. Never in a million years would I have thought it to be possible.

Wow. Speechless.

 

[Buckeye]

The fastest growing fraud is Affinity fraud. It often occurs within faith groups. A respected member promotes a Ponzi scheme-either for his/her own benefit of for the 5 percent kickback. Many of these go unreported.

Wasn't a lot of what Madoff did Affinity Fraud?

 

[scrinch]

Quote:
Originally Posted by modhatter View Post
Loving parents and loving children would find this hard to imagine. However, it does happen. My own father was a first class con man. He tried and successfully defrauded me, and I lost over $350,000 to him. It was the biggest shock of my life. Never in a million years would I have thought it to be possible.
Wow. Speechless.

+1

For some reason I can envision a kid growing up rotten and stealing from the parents a lot more easily than a kid growing up to find s/he's got a rotten parent.

 

[kyounge1956]

The fastest growing fraud is Affinity fraud. It often occurs within faith groups. A respected member promotes a Ponzi scheme-either for his/her own benefit of for the 5 percent kickback. Many of these go unreported.

Wasn't a lot of what Madoff did Affinity Fraud?

I believe you are correct.