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Tonya Papanikolas ReportingLast year, judges ordered 63-million dollars returned to Utahns who lost money in investments. Many of those "investments" were really scams.
Glen Weeks is a retired investment broker. You wouldn't think someone like him would fall prey to an investment scam, but he did, and he says it was easy to get sucked in.
Glen Weeks, Investment Scam Victim: “It sounded like a great deal, and the more I investigated, the more it looked legitimate."
Weeks met someone who said he was doing well investing in a so-called factoring plan, buying and selling various business accounts, which can be a legitimate way to make a profit. So Weeks looked into it, and eventually called the Utah representative, Gerald Trevor Jones. Weeks won't say how much he invested, just that the amount was "sizeable."
Glen Weeks: "I was the largest investor, from what I understand, in the whole scheme."
In the beginning, he got a return on his money, but soon checks were late and then nonexistent. The state began investigating Trevor Jones and his wife.
Wayne Klein, Director, Utah Division of Securities: “They were taking a fourth of the profits and not even telling the local people what their role was."
Eventually, the business was shut down and the Jones' were arrested. So were there red flags in the deal?
Wayne Klein: “There are a number of things to look out for in a scam. One is, how much are they offering in profits? Number two, who's selling it?"
The Jones' promised a 20-percent interest, much higher than the three-percent a bank may pay in a legitimate factoring business. The Jones' also were not licensed.
Wayne Klein: "If they're licensed, they are going to give you full disclosure."
The state says always ask for a prospectus, which the Jones' never provided. If the promoters don't have one, don't invest.
The Jones' have pleaded no contest in court. The state says the couple took 2-million dollars from dozens of investors; they've been ordered to pay less than half of that back.
