Dec 3, 2007 7:00 pm US/Eastern
CBS 2 HD Tracks Down Alleged Elderly Scam Artist
SEC Warns Older Citizens Not To Trust Certain 'Investors'
NEW YORK (CBS) ―
You work hard and save all your life for retirement. Well, imagine losing that nest egg, just when you need it the most ... to an investment scheme. As CBS 2 HD has learned it's happening to senior citizens in alarming numbers.
Anthony Certa has been enjoying the sweet life of retirement. That is until a man, he says, soured his golden years by swindling the 79-year-old out of his life's savings.
"I have nothing," Certa said.
CBS 2 HD caught up to Tony Torre, the man who allegedly pulled off the scam:
CBS 2 HD: "I hope you can explain why you took $40,000 from an old guy?"
Torre: "I didn't take $40,000 from anyone."
CBS 2 HD: "Really? You put $30,000 into a movie. That's a highly risky investment for a man who is retired isn't it?"
Torre is a neighbor of Certa's, and at one time was a registered stock broker. Three years ago, he suggested Certa give him $10,000 to invest in the stock market and another $30,000 to invest in the movie, "Wannabes."
"He told me 'Oh, blockbuster!'" Certa said.
But his returns were less than lackluster.
"Nothing, not even a dollar," Certa said.
Back to the confrontation CBS 2 HD had with Torre:
CBS 2 HD: "He's been calling you for years and he hasn't been able to get his money back."
Torre: "You need to call me later."
CBS 2 HD: "I think you are just jerking him around actually?"
Torre: "I'm not!"
CBS 2 HD: "How can you take $40,000 from a retired man knowing he can't pay his bills?"
And with that, Torre slammed his door on us.
Mark Schonfeld of the Securities and Exchange Commission said the elderly need to be extra careful when it comes to people like this.
"In many of these cases, these are not legitimate broker dealers," Schonfeld said.
At The SEC, authorities warn up to 80 percent of all fraudulent investment telemarketing pitches are targeted towards seniors.
"The unfortunate reality is in a lot of these cases, the people conducting the fraud get rid of the money or try to hide it as quickly as they can," Schonfeld said.
Moves like that make it very difficult for authorities to get the victim's money back. The Financial Industry Regulatory Authority, the SEC and the Queens District Attorney's Office are now investigating Certa's case.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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