RIA backs 'fraud college' to educate investors away from schemers

IA WEEK
May 17, 2010

The calls keep coming into RIA First Western Advisors ($142M in AUM) in Holladay, Utah, from clients who can't seem to discern the difference between a treacherous crook and a trusted company.

"It's unfortunate we have to spend any time on that sort of thing," says Gary Teran, president of the firm, of the need to educate potential investors on how to spot a shyster. So he decided to co-sponsor the first ever Fraud College. The free, day-long event set for June 30 will be open to the public. The conference is designed to help "people to be their first line of defense" against fraud, says Brent Baker, a partner with Parsons Behle & Latimer in Salt Lake City.

Affinity fraud accounts for the loss of an estimated $1 billion a year in Utah. Many victims are so shamed they don't report being fleeced.

"Our reputation collectively suffers," says Teran, who hopes 1,000 people show up and that the concept goes national. "We're trying to stop the fraud flow that detracts greatly from their businesses," says Baker, meaning RIAs don't get to legitimately invest funds that mistaken investors unwittingly hand over to crafty conmen.