From Birch Gold Group
Few names ring as many bells among domestic investors as Vanguard, an investment fund with over $5.3 trillion of assets under management. The company’s size, age and resume of reputability has led many investors to believe that entrusting the fund with their money is tantamount to placing it in a foolproof safe.
Yet according to a report from money.com, a recent incident involving a Vanguard employee showed that this is far from the case. The report states that in order for money to remain in an investment account, the account’s holder needs to display at least some activity on a semi-regular basis. In Philadelphia’s case, funds from accounts that haven’t been accessed for three years are transferred to the State Treasury, where they are held until an heir reclaims them. This most often happens with accounts belonging to the sick or elderly.
In 2012, a Vanguard supervisor decided to revise this process by transferring the inactive funds to himself, or, more specifically, his relative. Between 2012 and 2014, Pennsylvania’s Scott Capps abused his position with the company to divert the dormant assets to Lance Tobin, his brother-in-law. From there, Tobin would invest the money in real estate in order to muddy the money trail.
The scam went on for two years and netted Capps more than $2 million during the period. Capps did his best to erase any record of the activity while filing tax reports in accordance with his regular salary. Eventually, Capps’ scheme was discovered through unknown means, and the now-former employee and his associate pled guilty to a host of financial offenses.
Although Capps can be dismissed as single bad apple, his decades of honest work with the company prior to the incident only suggests that the human factor can, at any point, pose a security threat.
Vanguard representatives were scarce in their statements, insisting that this is an isolated incident and that their confidants’ money is secure. The spokespeople also said that every victim in the incident was reimbursed accordingly. But the case has placed doubts in the minds of many investors, especially given Capps’ seniority with the company. By the time of his departure, Capps had been a Vanguard employee for 23 years.
Elizabeth Loewy, co-founder of fraud-protection firm EverSafe, said that these cases are more common than people think, even with companies that give off an aura of impenetrable security. Loewy also said that such scams can often go on for years without being noticed.
Birch Gold Group has pulled together an extensive resource guide to help people detect and avoid financial scams. Some scams may be hard to detect, but the Birch Gold Group Scam Protection Resource Guide, now available on our website, can help you be better equipped to identify risks to your finances.
With global tensions spiking, thousands of Americans are moving their IRA or 401(k) into an IRA backed by physical gold. Now, thanks to a little-known IRS Tax Law, you can too. Learn how with a free info kit on gold from Birch Gold Group. It reveals how physical precious metals can protect your savings, and how to open a Gold IRA. Click here to get your free Info Kit on Gold.
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
Many years ago my dad mentioned a case where a couple of tool booth tolltakers were arrested after skimming a nickle or a dime, here and there, year after year. No one was the wiser, but the take added up, just like a dripping faucet or a leaking toilet. Their trick: do it each and every day, in the same amount, and the system won’t catch you.
Never knew how they were caught.