SEC Busts Somali Promising 5% a Month
By Don Bauder
November 20, 2009
The Securities and Exchange Commission has gotten a court order stopping Mahamud Ahmed of Spring Valley from running an investment scheme in which he guaranteed people in the Somalian community 5% a month returns. His victims were in San Diego, Seattle, and other places. He raised $3 million, including $200,000 from a local mosque. His company also purportedly provided check cashing and money transfer services.
LOL...First Nigerian, now Somolian!
If they can make quick bucks like this, why can't I. To hell with this American education LOL!!! I need some Pirate education!!!
Sounds like an affinity scam and Mahamud Ahmed is praying on his own people who probably have little English literacy. Shame on him for taking money from a Mosque.
Sounds like an affinity scam
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Yes, that's exactly wha it is. Glad you remembered the term, I forgot it.
What's an affinity scam?
It’s basically a person that targets a specific group (or membership) of people (with like interests) that are more vulnerable to because the con is also a member of that group and is trusted more than an outsider. Similar to a family member taking advantage of you, it’s a violation of trust and is very painful to the victim. I feel that soliciting members of a religious community is even more sinister.
Ah. Gotcha. Thanks. Never heard that term before.
I feel that soliciting members of a religious community is even more sinister.
By Ponzi
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Yes, I agree, and Bernie Madoff was the biggest scam artist there was in this regard, glad he will never be released from prison.
Response to post #1: In this case Somalis in America are ripping off other Somalis in America. Nigerians scam people from other countries. Best, Don Bauder
Response to post #2: All pirates don't ply their trade on the seas. Wall Street has many of them. Best, Don Bauder
Response to post #3: Definitely an affinity group scam. Best, Don Bauder
Response to posts #s 4,5,6: San Diego has had plenty of religious-based affinity scams -- Catholic, Protestant, Jewish. Best, Don Bauder
Response to posts #7 and 8: Madoff's was both a Ponzi and an affinity scam. Best, Don Bauder
Another Scam Diego Ponzi schemer, Karl Brownstein passed away recently. http://www.tributes.com/show/Karl-Browns...
He operated Electronics Emporium in Kearny Mesa in the late 1970's. He took a lot of money from a group of deaf people and amateur radio operators. He was a flamboyant man who had people call him "Doc", drove Rolls Royces and appeared in his own local TV commercials.
He swindled about 200 investors promsing a 30% a month ROI.
He was convicted of several fraud charges and sent to Lompoc, where he later escaped. But was recaptured and served more Federal time.
Response to post #14: Audacious, that: 30% a month. Best, Don Bauder
It might be observed that Dean Calbreath has a report on this story in today's (Tuesday) U-T. That's more than three days AFTER Don reported it in this blog. And the U-T calls itself a "news"paper.
Response to post #16: Similarly, J. David (Jerry) Dominelli's death was reported here on a Monday. The Voice of San Diego picked it up on Tuesday. The U-T put it on page one on Wednesday, and said it did not know the whereabouts or status of Nancy Hoover. But the Reader had reported in 2005 that she had married a Fletcher, and on the Monday when we reported Dominelli's death, we had mentioned her Fletcher marriage again. Best, Don Bauder
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