Business & Real Estate

State warns consumers of ‘asset recovery’ scams

The state Department of Business Oversight warned consumers Friday to be wary of companies offering to help recover lost investments – for a hefty, upfront fee.

The department said so-called “asset recovery companies” will cold-call consumers, saying they’ve been victimized by investment fraud. The caller then offers investigative, legal or other services, promising to recover the invested money.

But in order to receive help, DBO said, consumers are told they need to pay an upfront fee, which can range from $2,500 to $10,000.

Since January 2014, DBO said it has received 58 claims filed by asset recovery firms on behalf of consumers – something the consumers could have done themselves for free. DBO said it appears that seniors are often targets of asset-recovery schemes.

DBO advises those who believe they have been victimized to contact local law enforcement agencies or the state Attorney General’s office. More information is at dbo.ca.gov or by calling (866) 275-2677.

Call The Bee’s Mark Glover, (916) 321-1184.

Call The Bee’s Mark Glover, (916) 321-1184.

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