NCJ Number
197896
Date Published
2002
Length
241 pages
Annotation
This book discusses the prevalence, victimization effects, and prevention of capital investment fraud in Germany.
Abstract
There is evidence that capital investment fraud offenses are more prevalent than ever before in Germany. Police records show losses of DM1.5 billion for victims in 1999, and consumer associations estimate losses at over DM50 billion. This crime not only damages the national economy and the financial circumstances of individual victims, but also victims' self-esteem and trust in other people. Offenders, on the other hand, report on how they skillfully convinced their victims of a uniquely profitable transaction with a low risk. The facade of attractive offices and sophisticated presentations of the lure helped convince victims of the credibility of the scheme being offered. According to expert testimony in the area of consumer protection, there has been an increase in commodity futures sold by telephone, in which the potential investor is convinced that he/she can make a lot of money in the midst of a current weak share market and declining share prices. In view of the transnational character and professionalization of investment fraud, there is an increasing need for research on methods of general prevention and the strengthening of the integrity of the financial centers in Europe and elsewhere. Procedures for investigating and prosecuting capital investment fraud should be coordinated among European Union member states, banks and insurance companies, consumer protection agencies, economic journalists from press and television, and relevant scientific institutes. An important step has been made in the research project "Capital Investment Fraud in the Europe of EURO Monetary Union -- An International Comparison of Structures, Motives and Activities of Offenders and Victims," initiated by the Federal Criminal Investigation Agency and supported by the European Commission. This research will analyze the nature, methods, and interaction of offenders and victims in capital investment fraudulent transactions, with a view toward the development of prevention and response measures.