This Week's LessonWeek of December 23
This lesson continues the issue of Investment Fraud. You can review the Executive Summary to obtain the key points or read the Weekly Lesson for a more thorough presentation of this topic. Start by completing the following interactive quiz to test your knowledge.
A church is approached by an investment expert who is a former minister. He asks to speak to the congregation about a new program that he has developed, that in the past was available only to the wealthy. He personally guarantees an annual rate of return of 20 percent. Several members invest in the program, and the promoter uses some of the proceeds to pay "earnings" to previous investors, but uses most of the invested funds to pay for personal luxury items for himself and his family.
Instructions Click on the correct answer for each of the following questions.
Unscrupulous individuals are targeting churches and church members in fraudulent investment schemes. Church leaders must be aware of this risk and take steps to protect church assets as well as the assets of church members. This lesson is the third in a series that will explain the most common forms of investment fraud, provide several examples from real life, address the fiduciary duty of church leaders to invest church funds prudently, and provide practical steps that church leaders can take to minimize if not eliminate this risk. This week's lesson summarizes several actual cases of investment fraud that were perpetrated against churches or church members.