Scammed by their own flesh and blood - CBS46 News

Scammed by their own flesh and blood

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ATLANTA (CONSUMER ALERT) -

It had all the markings of a scam: The promise of astronomical returns on an investment and never any losses. But the ringleader of the scam was family and the investors trusted their money would be safe.

"The pitch I got is that because it was foreign exchange, they could make money regardless if the dollar went up or down," said Robert Hollins, a victim in this fraud.

The two men running the investment promised returns as high as 20 or 25 percent and investors saw that to be true in their monthly reports.

"Should have realized first, that there were no months with losses, and that should have been an absolute red flag," admitted Hollins.

Over 50 people were victims of this scheme and lost more than a million dollars. And all of them were either friends or family of the ring leaders.

"They were not only hit financially, many of them lost their life savings, but they were also hurt by the fact that they were taken in by someone who meant so much to them," said Jason Crowe, a US Postal Inspector.

"I defended him with vigor until it finally dawned on me it was a scam. I just couldn't believe it," Hollins said.

Whether or not it's someone you know, you should always do research before making an investment.

Both suspects in this case are spending a couple years in jail for conspiring to commit fraud.

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