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.