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Like a transmittable disease, financial and consumer fraud continues to ravage Utah. But now regulatory and law enforcement officials want to apply some preventive medicine.
Federal, state and local officials have banded together to form what they're calling the Financial Fraud Institute and are inviting Utahns to two events to learn about how to recognize and avoid scams.
"Here in Utah, federal, state and local law enforcement have seen numerous cases of Utahns being victimized year after year," Richard Best, Securities and Exchange Commission regional director in Salt Lake City, said at a Wednesday news conference, "losing in some instances their entire retirement savings and in some cases their children's education funds."
Michael Pickett, the FBI's white-collar crime chief in Salt Lake City, put an exclamation point on the fraud problem with statistics based on the number of grand-jury indictments, charges filed directly by prosecutors and restitution ordered by courts.
"We continue to be in the top five in the nation," Pickett said. And when it comes to those measures per capita, "we're in the top three."
Utah is particularly hard hit by affinity fraud, which occurs when someone within a group that shares bonds of trust convinces others to hand over their money for what turns out to be a scam.
While affinity fraud can affect any group, Utah is especially vulnerable because of the large membership in the Church of Jesus Christ of Latter-day Saints, whose congregations gather in local wards where trust runs particularly high.
"The key is the trust relationship," said Utah Attorney General Sean Reyes, and "when you have larger groups of people who trust each other, that can be a problem."
Best said the key to prevention is arming potential investors and consumers with information.
To that end, the federal, state and local coalition of regulators and law enforcement agencies is holding seminars April 26 in Salt Lake City and May 10 in Orem.
Each will have a keynote speaker and two panels of regulators and law officers who will give pointers on avoiding investment and consumer fraud. Booths and other information will be available.
To register or obtain more information, go to http://www.utfraud.com or call 801-579-6191.
Financial fraud seminars
What • Events to help Utahns avoid fraud
When • April 26, University of Utah law school auditorium; May 10, Utah Valley University Classroom Building, Orem
Time • 5 p.m. to 8:30 p.m. both locations
More information • For free registration and agendas, http://www.utfraud.com or 801-579-6191