Affinity fraud, a pernicious form of investment fraud targeting specific groups with shared
identities, took center stage at the University of Oklahoma College of Law’s Wilkinson Family
Speaker Series. This series, generously funded by Bruce Wilkinson, a 1969 OU College of Law
alumnus, aims to educate students, alumni, and the broader Oklahoma community about critical
issues in securities fraud and investor protection.
Bruce Wilkinson’s vision for the series is rooted in his deep appreciation for his legal education,
even though he never practiced law. He recognized the importance of giving back to the
institution that played a significant role in his life. The series is designed to provide practical,
real-world insights that benefit not only law students but also anyone with an interest in
investing.
The second annual series, held in March of 2023, began with an opening dinner where OU Law
Dean Katheleen Guzman presented alarming statistics from the Financial Industry Regulatory
Authority (FINRA). Over 25,000 complaints involving securities fraud were investigated by
FINRA, and in 2021 alone, 655 investment representatives were barred or suspended. These
figures highlight the ongoing challenges in safeguarding investors from fraudulent activities.
The following day featured guest speakers from across the country who delved into the specifics
of affinity fraud. Affinity fraud involves perpetrators who exploit the trust within a group with a
shared identity, such as religion, age, or profession. These fraudsters present themselves as
members of the group, using community trust to lure investors into fraudulent schemes. The
speakers emphasized the need for vigilance and skepticism, particularly when facing high-
pressure sales tactics that discourage thorough research.
Affinity fraud is especially insidious because it preys on the natural trust and camaraderie within
close-knit communities. This form of fraud often goes undetected longer than other types of
securities fraud because the victims are less likely to suspect deceit from someone they perceive
as a peer. The speakers at the Wilkinson Family Speaker Series highlighted the importance of
being cautious and doing due diligence, regardless of the source of the investment opportunity.
The series also addressed broader issues in securities fraud. With the trend towards self-directed
retirement planning and the projected growth of the elderly population, the potential for
securities scams is expected to rise. An investment fraud law firm plays a crucial role in
protecting investors, particularly vulnerable populations like seniors. Richard Frankowski, a
securities fraud attorney and speaker at the event, shared that over 3.5 million elders fall victim
to fraud annually. However, the actual number is likely higher, as many cases go unreported due
to the victim’s pride and embarrassment.
Frankowski stressed the importance of vetting brokers using resources like FINRA’s broker
check report card and being cautious of any investment that seems too good to be true. These
precautions can help mitigate the risk of falling prey to fraudulent schemes. As the investment
landscape continues to evolve, initiatives like the Wilkinson Family Speaker Series are vital in
fostering an informed and vigilant investing community.
No representation is made that the quality of the legal services to be performed is greater than
the quality of legal services performed by other lawyers.