ATTORNEY GENERAL ALERT: Illegal Ponzi Schemes will only Steal Arkansan’s Hard-earned Money

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Attorney General Leslie Rutlegde Arkansasag dot govAttorney General Leslie Rutledge

April 24, 2020
FOR IMMEDIATE RELEASE

CONTACT:
Amanda Priest, (501) 414-2223
Amanda.Priest@arkansasag.gov


ATTORNEY GENERAL ALERT: Illegal Ponzi Schemes will only Steal Arkansan’s Hard-earned Money

Rutledge says, ‘If it seems too good to be true, then it probably is’


 LITTLE ROCK – The COVID pandemic has sparked concern about more than just your personal health. It has created economic hardships for many Arkansans. As many seek to ensure they can pay their bills, illegal Ponzi schemes disguised as goodwill gestures such as so-called “Blessing Looms” are freely shared on social media that will ultimately steal money from those who fall prey.

“If it seems too good to be true, then it probably is,” said Attorney General Rutledge. “Blessing looms scams and other Ponzi schemes will ask for you to pay a small amount of money in order to receive a large payout as more people participate. I want every Arkansan to be aware of these schemes so they can keep their hard-earned savings in their wallets.”

Scammers use the “Blessing Looms” scam by posting it on social media and ask unwary readers to pay an entry fee (e.g., $100) with the promise that, as more people pay to build the pot of money by paying the entry fee, the participant will also get a payout (as much as $800) of that money. The surest way to identify these scams is if they promise large payouts in return for small investments, if they tell factually unsupported “success stories” of happy customers, or if they explain that future results rely on bringing in new participants to the scheme.

Attorney General Rutledge has identified several tips for Arkansans to use in protecting themselves against Ponzi schemes:

  • If something sounds too good to be true, then it probably is. Know that large sums of money generally do not result from small investments.
  • Consult the terms of use for Facebook and other social media platforms and report such scams as these platforms may prohibit schemes like this one.
  • Safeguard banking and financial information in order to prevent theft due to scams.
  • When using the internet, ensure that you are using a verified, secure, and encrypted website when sharing any personal or financial information online. Instead of clicking embedded links, consider typing the company’s actual URL website address in the search bar.
  • Do not disclose personal information to an unknown person online because it could result in identity theft or the opening of other accounts in their name.

For more information, contact the Arkansas Attorney General’s office at (800) 482-8982 or oag@ArkansasAG.gov or visit ArkansasAG.gov.

About Attorney General Leslie Rutledge

Leslie Carol Rutledge is the 56th Attorney General of Arkansas. Elected on November 4, 2014, and sworn in on January 13, 2015, she is the first woman and first Republican in Arkansas history to be elected as Attorney General. She was resoundingly re-elected on November 6, 2018. Since taking office, she has significantly increased the number of arrests and convictions against online predators who exploit children and con artists who steal taxpayer money through Social Security Disability and Medicaid fraud. Further, she has held Rutledge Roundtable meetings and Mobile Office hours in every county of the State each year, and launched a Military and Veterans Initiative. She has led efforts to roll back government regulations that hurt job creators, fight the opioid epidemic, teach internet safety, combat domestic violence and make the office the top law firm for Arkansans. Rutledge serves as co-chairs of the National Association of Attorneys General Veterans Affairs Committee, re-established and co-chairs the National Association of Attorneys General Committee on Agriculture and was the former Chairwoman of the National Association of Attorneys General Southern Region. As the former Chairwoman of the Republican Attorneys General Association, she remains active on the Executive Board.

A native of Batesville, she is a graduate of the University of Arkansas at Fayetteville and the University of Arkansas at Little Rock William H. Bowen School of Law. Rutledge clerked for the Arkansas Court of Appeals, was Deputy Counsel for former Governor Mike Huckabee, served as a Deputy Prosecuting Attorney in Lonoke County and was an Attorney at the Department of Human Services before serving as Counsel at the Republican National Committee. Rutledge and her husband, Boyce, have one daughter. The family has a home in Pulaski County and a farm in Crittenden County.

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