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Well it's no says.
That's great -- college.
But it's not an education on how to deceive others this is needed no knowledge on how not to become a victim.
Right we all need that an Adam Shapiro is at the Utah valley university he's got an exclusive interview.
With the meadowlands -- stay on this very topic Adam.
And it's because Utah is kind of at the epicenter of a particular kind of fraud affinity fraud.
Which is simply put when you know somebody not necessarily personally but you might have a connection to them for -- -- Bernie Madoff and his preying upon the Jewish community.
Here in Utah they experienced this kind of fraud through the church of the latter day saints and people who prey upon the the generosity of members of the church the take advantage of that.
The governor of the state of Utah Gary Herbert joins us now to talk about the problems of fraud that -- in Utah but nationwide because in -- one point four billion dollars just last year.
Victims and now you -- Through this fraud college which is open to anybody nationwide they can logon to the web site.
Utah's becoming quite aggressive against the rosters why you guys cracking down.
Well enough is enough I think we need to make sure that our people are educated that -- are made aware of the potential pitfalls out there in the investment community.
And so they can protect themselves.
Government can't do it all people can protect themselves if they understand a few basic principles.
Well it does basic principles are some of the things you can learn questions to -- on the web site but also this is a state.
Of self -- and yet so many people seem to fall prey to this how does that happen.
Well people of Utah are trusting by nature.
We have a lot of people know each other in the neighborhoods they associate with each other.
And unsuspecting to them we have -- -- -- move in and try to cultivate that relationship to in order to take advantage of their finances.
And that happens too often and 4500 people lost now one point four billion this past year this under investigation.
We may convict them when they put him behind bars put that money will not be coming back to those investors.
In an interview this morning with the chief of white -- fraud for the FBI he was telling us that despite the attention because of a Bernie Madoff -- Allen Stanford or mr.
Rothstein and Florida.
That these kinds of frauds are growing -- they're not getting smaller that the people who teach you are actually.
They're they're getting they're growing in numbers how can that be well I think.
If -- economic downturn people are a little bit more desperate and they want to believe that they can get 20% return per month.
And -- I think what did you think that's a little bit exorbitant.
And yes I did but I knew the person and they seem like such nice people and they said -- have some successes in this or that.
And they had somebody that I also knew that -- invest with -- that got this return.
And so they're sucked in to a scam and these cars know how to play it right and play on -- heart strings and take advantage of people.
Who were not willing to go out and do their own due diligence and -- one of the things we need to do is make sure that we as individuals take responsibility for spending our money.
And this Ronald Reagan used to say trust.
But verify and one of the things that the fraud college's teaching people how to do and we should point out that it's open to people nationwide.
Trust but verify simple questions to ask an investment advisor for instance.
Are you part of a sales contests would you get a prize for selling so many of these investment vehicles do you have a reference list of previous clients I can -- to talk about Q how are you going to be paid by commission -- by flat -- He's a common sense questions that a lot of us never ask our investment advisors why not.
Well sometimes we don't think about -- sometimes that the victims are elderly people.
And probably are -- not quite what they once were before maybe there is a single spouse -- That -- husband did all the financial stuff in the past now I've got this little -- state of forty or fifty or 60000 on retirement.
And I don't I've never done this before and the person that came to -- such a nice young man.
Handsome man on the neighborhood and so if it's a new for them this is they're just unaware they've never had the opportunity.
And responsibility -- -- People become susceptible when you think we got two point eight million people in the state of Utah.
4500 is not a large percentage but it's just enough and these victims are found in all different kind of walks of life.
So let me I just real quick wanna jump topics here so many states throughout the union RM budget crisis Utah has some difficulty.
But few years these state which is controlled spending.
What advice do you have for governors nationwide.
About how to get through this economic downturn because we're hearing from Washington borrow borrow spend spend and that's not how you do it and you Tom.
Well far be it for me to give other governors -- -- And there are in their own states that are unique compared Utah.
But the basic principles of good economic.
Soundness pertain to the individual -- the pertain to the states we are not spend more money -- we take him.
We -- to have a structurally imbalanced budget we ought not to grow government programs of one time money that's that's a common temptation.
No winners revenue shortfall we gotta have cutting of expenses and live within our means.
And I think in doing that we empower the private sector to come out.
If anything during economic recession we got to cut taxes not raise taxes.
And yet that seems to be the temptation to off minister raise taxes to maintain the status quo and everybody else is hurting.
That's not good economics Ronald Reagan proved by cutting taxes you increase revenues John F.
Kennedy proved that by cutting taxes -- raise revenues.
I think you have back through history -- find that that really is the economic model that produces economic expansion cut expenses on the government side and how the private sector in the economy will grow.
Gary -- governor of Utah thank you so much for joining us live on Fox Business it's a pleasure to be here for the front college.
We're gonna throw back to you in New York but if you need to get some of this advice you can get very cheaply at the -- college www.
Fraud college dot org.
It's right there it's a nationwide watchdog neighborhood watch.
Back to you -- post Madoff we all know that thank you very much how great to hear from the governor.
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