Desperate for cash, many Americans are looking to make some money through risky gambles and “get rich quick” schemes. Meanwhile, there are plenty of seemingly genuine people out there who apparently believe it’s a great time to take advantage of their fellow men (or women). As the following reports make clear, it’s worth remembering the old adage: if it sounds to good to be true, it probably is.

“‘Gift Tables’ Lure Women: Inside the Social Event Some Call an Illegal Pyramid Scheme Bound to Crash” (New Haven Register)

Editor’s note: Register reporter Susan Misur was recently invited to attend a local “gifting table,” a growing national phenomenon that some say is an illegal pyramid scheme and others say is a legal way to boost female empowerment and bank accounts. Women who attended were not asked to provide last names or what they do for a living, and the host was unaware that Misur is a reporter.

All eyes were on the gold platter.

It held 10 small, red envelopes emblazoned with Chinese words in shiny lettering around dainty Asian drawings.

Inside each envelope was $500 in cash — $5,000 in total.

The platter held the first of eight payments for one of nine wine-sipping women gathered in arm chairs and sofas in the living room of a stately Shoreline home last week.

And the envelopes represented a promise, or maybe a tease, of what reward could come to the other women.

Seven of the women present were part of what’s called a gifting circle, transferring thousands of dollars to each other over many months and recruiting friends to join and open their pocketbooks.

Another was a guest at the gathering. She was there to observe, ask questions and consider joining to make some money to buy a new car, invest in a business, take a vacation, pay off loans, donate to charity — just some of the reasons scores of other women across the Shoreline have been joining such circles over the past two years.

The ninth woman in attendance — holding the coveted platter — was buying her place in the circle that night for $5,000.

Meetings like this one are held in nearby towns each week, and more women are handing over thousands in cash, hoping eventually to make $40,000 or more. Others are profiting three times that amount, renovating their homes and paying medical bills.

Women involved claim the gifting circles are legal, while Attorney General Richard Blumenthal contends they’re against the law. Some local law enforcement agencies said they are unaware of the gifting circles.

Blumenthal said the circles — commonly known as women’s gifting tables — are really illegal pyramid schemes that will eventually collapse and cost many participants thousands.

“They are essentially pyramids that exploit hopes and dreams, but leave people with huge losses when they collapse,” Blumenthal said.

Local gifting table members and a prominent attorney who represents them said gifting tables are carefully structured not to violate U.S. tax laws.

Gifting circles, which right now are only targeting women, are rampant along the Shoreline. Women involved also confirmed that Barbara Hamburg, a Madison resident who was slain March 3, was a member of a local table. There is no indication her membership played any role in her death.

Law enforcement officials and fraud experts said women nationwide are joining gifting tables at higher rates than ever to battle the emotionally and financially taxing effects of the recession and to find a sense of belonging. The gifting table may be wonderful for a while, officials said, until the table’s legs collapse

“Sour Economy Leaves More at Risk of Fraud” (The Oklahoman)

Desperate homeowners facing foreclosure should look for free services

Financial fraudsters tend to prey on the weak and desperate, and the bad economy has exposed a growing number of potential victims, local experts say.

“It seems like the only people who really make money in a recession are the scammers,” said Jane Wheeler, who is head of the Oklahoma Attorney General’s Consumer Protection Unit.

“They take advantage of people who are desperate and vulnerable and they know because of the budget crises that law enforcement also has a problem keeping up with all the scams that are going on.”

Ponzi schemes, get-rich-quick scams and, increasingly, mortgage foreclosure swindles are victimizing Oklahomans, Wheeler said.

Jennifer Wallis, vice president of Consumer Counseling Center of Central Oklahoma, said her agency is dealing with a growing number of complaints from consumers who have fallen for bogus pitches.

“It just breaks my heart whenever we see a client come in and they’re delinquent on their mortgage, they’re facing foreclosure … and the scam artist swoops in and kicks them when they’re down,” Wallis said.

“To me they’re just the lowest of the low to prey on people in that situation, but we see it over and over again,” she said.

“Ponzi Scheme Targets Hawaii Residents” (KHON2.com)

Everything from retirement savings to home equity have been squandered for 64 Hawaii families in a Ponzi scheme that led to the arrest of a Florida man Monday.

Authorities say the victims were lured by promises of unrealistic returns on foreign exchange investments.

And they warn, con artists just like this are rampant especially in the recession.

“Give me at least $30,000, I’ll give you four to 10 percent interest returns per week.” That was the promise of self-proclaimed investment whiz Patrick Rakotonanahary and a company he ran out of his Florida home called “Cyber Market Group.”

“This resulted in 64 Hawaii families liquidating their retirement savings or the equity in their homes only to find themselves defrauded in this alleged Ponzi scheme,” said Charlene Thornton, the F.B.I. Special Agent in Charge.

“Recession Breeds Insurance Scams” (McClatchy Newspapers)

WASHINGTON- The sour economy is producing a bumper crop of shady characters that are fueling a wave of insurance fraud that is keeping regulators and law enforcement officials busy from coast to coast.

Whether it is worthless health plans peddled by fax, staged auto accidents, arson, or slip-and-fall accidents at the local mall, insurance fraud of all kinds is booming in the recession, and consumers are paying the price in higher premiums.

To keep it in perspective, roughly 48 million insurance claims are made each year in the United States, and less than one-quarter of 1 percent are referred to the nonprofit National Insurance Crime Bureau for investigation of possible fraud.

Last year, that amounted to just more than 85,000 questionable claims. But it was up almost 14 percent, from nearly 75,000 in 2008.

A recent survey of 37 state insurance-fraud bureaus by the Coalition Against Insurance Fraud found that the recession “appears to have had a significant impact on the incidence of fraud” last year. On average, the bureaus reported increases in case referrals and new investigations in all 15 categories of fraud the survey covered.