CFO Sink Issues Two Consumer Alerts

Florida’s Chief Financial Officer, Alex Sink, has issued two consumer alerts as detailed below.  

Should you have any questions or comments, please do not hesitate to contact this office.

 

CFO Sink Advises Floridians That Tennessee Has Placed NFOA Into Receivership

TALLAHASSEE–Following up on a warning she issued in April, Florida Chief Financial Officer Alex Sink is now advising Florida consumers who made annuity transactions with the unauthorized Tennessee-based National Foundation of America (NFOA) that the Tennessee Department of Commerce and Insurance (TDCI) has appointed a special deputy to take over and resolve the company’s business affairs. 
 
Tennessee officials have said they will “pursue all means necessary” in effort to have investments returned to the elderly consumers who invested with NFOA.
 
Records indicate that 41 Florida senior citizens, mostly in Central Florida and the Fort Myers area, transferred more than $6 million in assets to NFOA, and that 10 additional Florida transactions were never completed.   CFO Sink issued a warning to Floridians in April that NFOA was operating without a license, following an investigation by the Department of Financial Services’ Bureau of Investigation and the filing of a cease and desist order by the Office of Insurance Regulation. Now investigators have determined that the company never had designation as a 501(c)(3), or charitable organization, under the Internal Revenue Code.
 
“We are looking into the actions of several Florida agents who sold these products,” said CFO Sink, “and we stand ready to assist Tennessee officials in any way we can.”
 
NFOA marketed itself as a charitable organization and sold a term annuity product in several states, convincing consumers to replace their existing annuities or cash value life insurance policies in exchange for significant tax benefits due to their alleged charitable organization status.
 
CFO Sink urges Floridians not to transact insurance or financial business with any entity not authorized to do business in Florida.  To verify licensure, consumers can log on to the Department’s website at www.fldfs.com or call the department’s Consumer Helpline at 1-800-342-2762.  Investors who have transacted annuity business with NFOA should contact TDCI’s Special Deputy Paul Eggers at (615) 277-0700, by fax at (615) 277-0710, or by e-mail at peggers@nfoarehab.com.
 

 

Consumer Alert: CFO Sink Warns Of Bogus Lottery, Check Scam

Phony check looks like State of Florida warrant and bears CFO’s name

TALLAHASSEE—Florida Chief Financial Officer Alex Sink is warning consumers to be on the lookout for a bogus lottery contest scam that includes a letter indicating the recipient has won money from the “North American Prize Pool” along with a check that appears to be a State of Florida warrant and contains the CFO’s name and signature—but it is all bogus, warned CFO Sink.
 
“So far we have no information that anyone has cashed the check or been financially harmed, but these vultures are playing a numbers game,” said CFO Sink, who oversees the Department.  “They are sending out hundreds of bogus letters and checks hoping that if only one percent of the recipients respond they will be able to make some easy money.”
 
The bogus checks have been traced so far to Washington, California, Hawaii, Pennsylvania and Florida.

The letter indicates it comes from the “Lottery, Resources Management & Payment Verification Center” and provides a British Columbia address.   The last sentence of the letter advises consumers against sharing the information with others:  “Please note that in accordance with our company’s policy … and safety reasons, we strongly advice [sic] that you keep your winnings and claim number confidential and personal.”
 
The letter claims the recipient has won $100,000, provides a claim number and directs the recipient to contact Jean Gorden at 1-416-854-2096.  The letter states that the enclosed check for $3,850 is intended to cover non-residence taxes, but upon calling the phone number provided in the letter, the recipient is directed to cash the check and use the cash to buy a MoneyGram to send to an address in Toronto, Ontario.   Each of the checks included in the letters contain the same warrant number, 7714957150.  Canadian officials have been advised of the scam.
 
The Department’s Bureau of Fiscal Integrity is looking into the matter.  Anyone who receives one of these letters is asked to call the Department’s Consumer Helpline at 1-800-342-2762.