First Nations Helps Protect Native Money from Financial Fraud

LONGMONT, Colorado (Oct. 29, 2014) – Financial fraud has been far too common in Native American communities, and it is a growing problem with the recent increase in tribal lawsuit-settlement payments. First Nations Development Institute (*First Nations* [ http://www.firstnations.org ]) has partnered with the *FINRA Investor Education Foundation* [ http://www.finrafoundation.org/ ] to produce a pamphlet that can help people protect themselves from common financial fraud techniques.

Over the past five years more than $1 billion in tribal trust settlements have been reached, including the Keepseagle and Cobell class-action legal settlements. Many of these have resulted in payments to individual tribal members, which makes them prime targets for fraudsters who follow a simple strategy: Follow the money! The FINRA Investor Education Foundation is collaborating with First Nations to help reach the recipients of these trust fund settlements, as well as other tribal members who may be targeted for their wealth.

The pamphlet, titled "Fighting Fraud 101: Smart Tips for Investors," is designed to appeal to individuals, members of tribal investment committees, and retirees. It lists some common fraud tactics, such as the "Social Consensus" tactic that leads you to believe that your savvy friends and neighbors may have already invested in a product. With the "Source Credibility" tactic, a fraudster may falsely suggest they have worked with other tribal investment committees or helped people manage lump-sum payouts from tribal lawsuits to try to gain trust. The pamphlet also teaches several techniques to avoid being taken advantage of and how to report suspicious behavior.

"We are honored to be able to collaborate with several national partners, including the FINRA Investor Education Foundation and the Office of the Special Trustee for American Indians, to provide financial education for tribal members," said First Nations President Michael E. Roberts.

First Nations representatives Sarah Dewees and Shawn Spruce spoke today (Oct. 29, 2014) at a Federal Trade Commission event in Washington, D.C., titled *"Fraud Affects Every Community."* [ http://www.ftc.gov/news-events/events-calendar/2014/10/fraud-affects-every-community ] The purpose of this meeting was to highlight the range of consumer, financial and investor fraud techniques that affect diverse communities. "A lot of people aren't aware that financial fraud is a big problem on many Indian reservations," noted Dewees, who is senior director of research, policy and asset-building programs at First Nations. "I am happy we have been able to continue our work with the FINRA Investor Education Foundation and the Office of the Special Trustee to help community members protect themselves against financial fraud."

The pamphlet can be viewed at this link – *http://www.firstnations.org/knowledge-center/predatory-lending/research* [ http://www.firstnations.org/knowledge-center/predatory-lending/research ] – on First Nations' website. To order printed copies of the pamphlet, please contact *info@firstnations.org* [ mailto:info@firstnations.org ].

*About First Nations Development Institute*

For 34 years, using a three-pronged strategy of educating grassroots practitioners, advocating for systemic change, and capitalizing Indian communities, First Nations has been working to restore Native American control and culturally-compatible stewardship of the assets they own – be they land, human potential, cultural heritage or natural resources – and to establish new assets for ensuring the long-term vitality of Native American communities. First Nations serves Native American communities throughout the United States. For more information, visit *www.firstnations.org* [ http://www.firstnations.org ].