Again, this government action in no way guarantees an end to the flow of letters and schemes that foundations and others have endured, but it does send a warning to other criminals that law enforcement agencies are serious about cracking down on fraud. Since fraudulent schemes show no sign of disappearing, it is important for foundations to guard against the many ways in which criminals may try to get their hands on charitable funds. This is especially true when it comes to investments, the area in which foundations are most likely to be solicited. The no-risk investment with an absurdly high guaranteed return remains a continuing problem. When offered the chance to participate in such a scheme, foundation managers should exercise great caution.
Caution is necessary even when the proponent of such a scheme is a trusted acquaintance.
Asking for financial statements and evidence of registration with appropriate authorities may help prevent unfortunate consequences. First, report your suspicions. A call to your state attorney general or the Council may reveal that you are not the only one who has received a solicitation and may aid prosecution. Also, be careful. It is important to keep in mind that some of these con artists are criminals who may be violent.