NTLA predicts more suits coming against deceptive seminar companies aimed at scamming the elderly, naive and vulnerable investors
JUPITER, FL, USA, February 4, 2020 /EINPresswire.com/ -- For over 20 years, The National Tax Lien Association (NTLA) has remained steadfast as the non-profit watchdog representing tax investors through legitimate education, training, networking, engagement, and ethical business practices.
“Unfortunately, many tax lien or tax deed educators in this space are simply scams,” commented Brad Westover, Executive Director of the NTLA. “They look for naive investors, some of which are elderly, and then persuade them to liquidate their hard-earned money and savings (i.e. 401k or IRA benefits) to invest in tax liens. This practice is deplorable. The NTLA is pleased the FTC is making strides to expose and get rid of bad actors in this arena.”
The FTC is looking to recoup over $400 million that their complaint alleges has been wrongfully taken from consumers. To read the full FTC press release, click HERE.
The fraudulent and deceptive education is designed as follows:
1. Free training advertised via postcards or radio ads on tax lien investing;
2. The “free” training concludes with selling attendees $2,000 for books, CDs and another seminar;
3. The next seminar attendees are pressured to cough up another $20,000, $30,000 or $40,000 for bogus levels of “coaching.” So called “experts” are on-hand to extract people from their hard-earned retirement money.
Once these scammers coerce people into either liquidating their 401k accounts, paying by credit card, or any other means of acceptable payment, they often add insult to injury by selling them garbage liens and extracting more money. A garbage tax lien is one in which the amount of lien is greater than the actual value of the property. They have also been known to sell expired liens which are worthless. This practice is no different than selling someone yesterday’s losing lottery ticket. The money invested is gone with no hope of any return.
“It’s heartbreaking when we receive calls from adult children looking to protect their elderly parents,” continued Westover. “We offer a beacon of light to victims and look forward to the day the FTC shuts down every seminar that promises “government guaranteed returns,” “no competition,” “risk free,” “get rich quick,” and other deceptive and untrue promises.
The NTLA offers legitimate training for both novice and experienced tax lien or tax deed investors. The next opportunity for honest and interested investors to learn the facts of potential upside and downside of investing will take place at the NTLA 2020 Annual Conference & Expo on March 4-6 at the Margaritaville in Hollywood Beach, Florida. Attendees learn the dangers of unwise investing and, most importantly, what questions to ask before investing.
All NTLA members sign a strict Code of Ethics. The Association provides honest guidance and best practices for investors and local governments. We have zero tolerance for “snake oil” salesmanship or “bait and switch” tactics.
“All consumers should err on the side precaution when considering attending seminars. If it sounds too good or too easy, then the whole story is likely not being taught,” concluded Westover.