Andy's Got Your Back when an investment carries a "guarantee" - Action News 5 - Memphis, Tennessee

Andy's Got Your Back when an investment carries a "guarantee"

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MEMPHIS, TN -

(WMC TV) - U.S. postal inspectors want consumers to know that all investments carry some risk.

In this case, the partners of A&O Resource Management told investors they could be "guaranteed" big returns if they bought a life insurance policy product called a life settlement.

"The return rates that were offered to people were very high," said Postal Inspector Marydith Newman. "In this instance, between 12-15 percent on the investment."

The truth:  it was a scam.

It suckered 800 victims across the country for a total of $100 million.

The firm's partners spent all of it on luxury homes, high-end cars, jewelry and antiques.

Many of the victims lost everything. "They've lost their life savings and they have to go back to work," Newman said. "They have to find a job when it's not easy to find a job."

Your job is to be vary wary when you hear the word "guarantee" with any kind of investment.

The only solace in this case:  A&O Resource Management's partners were sentenced to 45 years in prison for their little "guarantee."

Copyright 2012 WMC-TV. All rights reserved.

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