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TRENTON
– Question: One type of investment
fraud involves misconduct by brokers with
control of investor accounts. If a broker
conducts unnecessary buying and selling
within a client’s account, solely
to generate extra commissions for himself,
and not for the benefit of the investor,
the broker is acting unethically and may
be breaking the law. The investor may end
up paying more in commissions than he or
she earns on the investments. What is the
name of this scam?
The
New Jersey High School Consumer Bowl team
from Irvington High School had the answer:
That particular investment scam is called
“churning.”
With
that correct response to the final question,
the Irvington team became the victor today,
in the State Division of Consumer Affairs’
16th annual High School Consumer Bowl competition.
“The
Division of Consumer Affairs fights hard
for consumers, and takes bold steps to hold
businesses accountable to our consumer protection
laws,” Attorney General Jeffrey S.
Chiesa said. “But we know the single
best way to prevent fraud is to promote
consumer awareness, and give everyday citizens
the knowledge and tools to protect themselves.
The Consumer Bowl provides that awareness
in the form of a tough competition to find
the best-informed school in New Jersey.
All of the students who participate do an
important service not just for themselves,
but for their families, friends, and future
careers.”
Of
the other two finalists, Freehold Township
High School placed second, with 105 points,
and Moorestown Friends School came in third,
with 70 points. The final competition was
held today at the Richard J. Hughes Justice
Complex in Trenton. Irvington High School
won with 110 points.
“The
winning team from Irvington High School
and the finalists from Freehold Township
High School and Moorestown Friends School
are among the best-informed consumers of
any age group in New Jersey,” Eric
T. Kanefsky, Acting Director of the Division
of Consumer Affairs, said. “They are
well equipped to use their knowledge of
consumers’ rights, and New Jersey’s
consumer protection laws; when buying a
car or home; signing a contract; making
purchases, investments and charitable donations;
and beginning their careers. I am very proud
of the example these well-informed students
are setting for their peers and communities.”
A
total of 90 schools entered the 2012 Consumer
Bowl, which began with countywide competitions
in January. The teams from Irvington High
School, Freehold Township High School and
Moorestown Friends School succeeded at the
county level and at the regional competitions,
held in April; they came into today’s
final competition as the top teams from
North, Central, and South Jersey, respectively.
The
competition this year was intense, and included
three high performing teams. Freehold Township
High School was the Consumer Bowl’s
2011 statewide winner. Irvington High School
was the 2010 statewide winner. Moorestown
Friends School first joined the Consumer
Bowl competition last year, but in both
of its first two years it swept the county
and regional competitions, to represent
South Jersey in the final.
The
High School Consumer Bowl is part of the
NJ Division of Consumer Affairs’ effort
to empower New Jersey’s consumers
with the information needed to protect themselves
against fraud, and make the most of their
hard-earned money.
The
Consumer Bowl uses a game-show format to
test students’ knowledge of consumer
rights and related issues. Topics include
Ponzi schemes and investment fraud, the
purchase and leasing of new and used vehicles,
regulated businesses such as health clubs,
consumers’ rights when making retail
purchases, and general knowledge of the
State’s consumer protection laws and
regulations.
The
following students represented Irvington
High School in today’s final competition:
- Brittany
Newby, Team Captain
- Josmar
Adames
- Cassandre
Louis
- Jenny
Michel
- Chiamaka
Udoye
- Kadeem
Willis
The
following students represented Freehold
Township High School:
-
Samatha Fitzgerald, Team Captain
- Joanna
D’Avella
- Mark
Rinder
- Samantha
Sanchez
-
Morgan Thompson
The
following students represented Moorestown
Friends School team:
- Amanda
Connell, Team Captain
- Spencer
Bard
- Aviana
Duca
- Kirsten
Mullen
- Trinh
Son
Schools
interested in competing in next year’s
Consumer Bowl competition may contact the
State Division of Consumer Affairs at
973-504-6241.
Consumers
who believe they have been cheated or scammed
by a business, or suspect any other form
of consumer abuse, can file a complaint
with the State Division of Consumer Affairs
by visiting its website or by calling
1-800-242-5846 (toll free within
New Jersey ) or 973-504-6200.
Follow
the Division of Consumer Affairs on Facebook,
and check our online calendar
of upcoming Consumer Outreach events.
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