Kentucky Local News, Weather, Sports | Lexington, KY | WKYT

Consumer Alert: Beware of investments that promise huge returns

LEXINGTON, Ky. (WKYT) - Here's a cautionary tale about investing. When someone promises you a huge, guaranteed return, consider it a red flag.

"They can be risky investments," says U.S. Postal Inspector Marydith Newman.

Postal inspectors want consumers to know all investments carry some risk. In this case, A&O Resource Management told investors they could be guaranteed big returns if they bought a life insurance policy product called "A Life Settlement."

"The return rates that were offered to people were very high in this instance between 12-15% on the investment," Newman says.

Hundreds of people were lured in. Most of them were senior citizens.

"Who pulled money out of their 401k or refinanced their home to invest in A&O because they were told this was a guaranteed investment and they saw this as a lucrative thing to help them later in life," says Newman.

It turned out to be a scam. There were 800 victims across the country. They lost a total of $100 million dollars.

The crooks spent all of it on items like luxury homes, several high-end cars, jewelry and antiques.

Victims were left with nothing.

"They've lost their life savings and they have to go back to work, have to find a job when it's not easy to find a job."

The two men at the top of A&O Resource Management are behind bars after receiving more than 45 years in prison for their role in the scheme.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus

WKYT

2851 Winchester Rd. Lexington, Ky 40509 859-299-0411 - switchboard 859-299-2727 - newsroom
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 185705672 - wkyt.com/a?a=185705672
Gray Television, Inc.