Target 2: Investment Fraud Comes to Main Street America - WBAY

Target 2 Consumer Alert

Target 2: Investment Fraud Comes to Main Street America

Updated:

Your investments are your security, and scammers are looking to steal them out from you, leaving you with nothing for the future.

A man who lost his life savings is sharing his story to let people know investment fraud doesn't just happen on Wall Street.

Retired business owner Loren Dalton's longtime accountant stole more than $900,000 from him in a bogus investment scheme.

"He did my income taxes and later he came up with this investment - guaranteed - never dropped below 8 percent. It wasn't worth the paper it was on," said Dalton.

The accountant, Barry Korcan, urged his clients to put their money in his company called Guardian Investments.

The irony is in the name. He didn't guard their money.

"They would get these statements thinking their money was growing," said Randy Hayden, U.S. Postal Inspector.  "At the end of the day, these people lost their entire investments."

Korcan stole more than $7 million of his clients' money and used it to buy several properties.

He used the money on this golf center, lake homes and office buildings.  Meanwhile, his victims lost everything.

"I feel terrible about it.  I don't want anyone else to have to go through what I went through over this scam," said Dalton.

Barry Korcan turned himself into Pennsylvania authorities.

He pleaded guilty to federal charges of mail fraud and income tax evasion and faces more than four years in prison.

When someone claims to be a stock broker - you can research it on your own with websites such as the SEC: http://www.sec.gov/investor/brokers.htm

Before you invest or pay for any investment advice, make sure your brokers, investment advisers, and investment adviser representatives have not had disciplinary problems or been in trouble with regulators or other investors. You also should check to see whether they are registered or licensed.

According to the SEC this is very important, because if you do business with an unregistered securities broker or a firm that later goes out of business, there may be no way for you to recover your money - even if an arbitrator or a court rules in your favor.

AARP also offers a Financial Adviser Questionnaire: http://assets.aarp.org/www.aarp.org_/articles/bulletin/money/financialquestionnaire.pdf

We want to know about any problems that might put you, your family or neighbors at risk. Contact us at target2@wbay.com.

Powered by WorldNow
  • 115 S. Jefferson St. Green Bay, WI 54301
  • Email: wbay@wbay.com
  • Phone: (920) 432-3331
Powered by WorldNow

All content © Copyright 2000 - 2014 Worldnow and WBAY. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.