Financial Crime World

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Haiti: Check Fraud Prevention Crucial as Community Sees Rise in Affinity Fraud

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A recent spate of investigations has exposed the alarming extent to which Haitians have been targeted by fraudsters within their own communities. Dubbed “affinity fraud,” these scams involve scammers exploiting trust within a community, ethnic group or religious organization to swindle victims out of millions.

High-Profile Cases

In one high-profile case, Marc Henry Menard and his partner Laesha Jean-Louis were charged with defrauding over 50 individuals, mainly from the Haitian American community, of at least $1.65 million. Another instance saw NovaTechFX founders Cynthia and Eddy Petion allegedly running a $1 billion Ponzi scheme targeting mostly Haitians in New York through prayer groups and Creole language groups on social media.

The Urgent Need for Awareness and Prevention

EminiFX CEO Eddy Alexandre was found guilty of perpetrating a $250-260 million cryptocurrency scam that attracted thousands of investors from Haitian communities globally, relying heavily on the French-speaking faith community. These cases highlight the urgent need for awareness and prevention of affinity fraud.

How to Protect Yourself

Experts warn that even if an investment opportunity is presented by a trusted community member, such as a pastor, doctor or public official, it’s crucial to verify its legitimacy. Be cautious of endorsements from respected figures within the community, as they may be unaware of the scheme’s illegitimacy.

To protect yourself:

  • Research the recruiter or promoter’s financial background and ensure they are registered with relevant regulatory bodies.
  • Consult with an independent certified financial advisor and a lawyer specializing in financial fraud.
  • Verify the investment opportunity by requesting detailed information and documentation, checking if it has been audited by a reputable third party, and cross-checking official government databases.
  • Be wary of pressure tactics that seem too good to be true and avoid investments with unrealistic returns.
  • Don’t assume a website or app makes an investment legitimate, and don’t give in to peer pressure.
  • Report suspicious activities to organizations like the Federal Trade Commission and Consumer Financial Protection Bureau.

Staying Safe

To stay safe:

  • Attend financial literacy programs and fraud prevention workshops organized by community centers, non-profits, or local governments.
  • Engage with community groups or immigrant organizations that offer advice on avoiding scams.
  • Discuss potential investments with trusted family members or friends before committing.
  • Report physical threats or intimidation to the authorities.

If You’ve Been a Victim of Fraud

Have you been a victim of fraud by someone in the Haitian community? Contact Macollvie@haitiantimes.com.