It's a sad reality, but when a national crisis takes hold, so too does shady figures willing to create a business opportunity.
Last year, when home foreclosures and unemployment created the perfect storm for American Dream melt-down for many Americans, business licenses were also hitting record highs.
Many of them were issued to "foreclosure specialists," attorneys and legal defense funds with questionable integrity looking to cash in on desperate homeowners with seemingly nowhere to turn but the first billboard or web banner ad promising to save their homes.
And cash in they did.
Usually the scam went something like this: Homeowner behind on payments calls toll-free number.
Seemingly caring professional promises to help, sometimes giving false guarantees that they won't be forced out of their homes.
Homeowner sends certified check to foreclosure firm at temporary post office box as a "retainer," held until foreclosure firm begins negotiations with mortgage company.
Check received by firm.
Phone number disconnected.
Web site removed.
Homeowner savings gone, Sheriff arrives at front door.
Until states like New York (known for their tough records consumer protection laws and of successful prosecutions for breaking them) started a very public crack-down on these foreclosure schemes late last year, coupled with the federal government's scramble to crack down on mortgage companies sitting on mountains of paperwork, foreclosure "help" was the biggest business out there for the scheming entrepreneur.
Of course, there are still many of them out there fully staffed with hungry self-starters in windowless call centers.
But they're not growing as much.
Attribute it to the recovering housing market or the fact that more mortgage companies are willing to make a deal, but foreclosure defense scams are dropping from the public radar in favor of the next big crisis: The perceived lack of affordable health insurance.
Chances are, the same guys who promised to save your home from being taken over by the bank may be calling you or netting you on the Internet with promises of guaranteed health insurance benefits from some companies that sure sound legit.
Consider some of the companies who bankrolled insurance premiums from hundreds of people who were either denied coverage from major health insurance companies or couldn't afford the plans: In Missouri, "Americans for Affordable Healthcare, Inc.
," "Key Benefits Administrators, Inc.
," and "Serve America Assurance, Ltd.
" were among several other outfits who sold great sounding policies with affordable group health insurance rates.
But they weren't worth the paper they were written on - if there was any paper at all.
The Missouri Department of Insurance filed a motion to haul 12 of the individuals behind some 14 fake health insurance companies to face charges they defrauded Missouri residents out of $2,000 each for a "membership" in their insurance plan.
One consumer, according to the St.
Louis Post Dispatch, wound up with a $60,000 medical bill after he realized his policy was little more than a poker chip on a scammer's table.
Even in times of economic desperation, the old adage "if it sounds too good to be true, it probably is," still applies.
But that still can't keep those of us who want to believe there is inherent good in everyone from falling for almost anything.