When investing in charitable annuities, investors should ensure that the firm or individual is representing a legitimate charitable organization and that the organization is fully aware of the salesperson’s activities. In an increasing number of cases, a solicitor will pose as an employee of a charitable organization and offer customers the opportunity to invest money that will purportedly provide monthly annuity payments to both the investor and the charity. Unbeknownst to the investor, a significant portion of the funds are never invested for charitable purposes, but instead are directly deposited in the solicitor’s personal account. The following are examples.
