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RIP-OFF ALERT: Of all the types of fraud, affinity fraud is one that's particularly effective because it hinges on dealing with people who are "like you" -- hence the name. Human nature dictates that we let our guard down when we're approached by someone of the same religion, race, profession, etc.

Consider this example: The Wall Street Journal reports that the son of a rabbi stole $100 million from fellow members of the Jewish community after promising to invest it (with huge returns) in "private placements."

Private placements are an exotic sort of investment where you discover under-the-radar businesses that are poised to boom and then invest in them.

But the rabbi's son was operating a classic Ponzi scheme. He used the money taken from later investors to pay earlier ones, and he pitched people in synagogues throughout Virginia, Illinois, New York, Israel and South Africa.

The Los Angeles Times reports a similar Ponzi scheme saw one criminal steal $22 million from people using the private placements shtick. Returns of 40% were promised. The culprit used the money to fund his lifestyle with his wife and his mistress. In fact, the man gave twice as much money to the mistress as he did to the wife!

This latter example is not strictly a case of affinity fraud like the first one. However, Clark has some advice for you if you're ever confronted with either situation:

• If you don't understand what they're pitching, don't do it.
• Just because someone is your pal at the golf course or a house of worship, it does not mean they're automatically more trustworthy than a stranger on the street.

All across America, people have filed complaints about the plague of automated calls coming to their homes. The recent surge in "robo-calls" is because they now cost a fraction of a cent to make thanks to the Internet.

The FTC has now issued new rules about robo-calls. Starting just before Christmas, you'll have an option at the end of a robo-call to press a button that indicates they can no longer call you. Then, beginning in September 2009, companies will actually have to ask for express permission before they even call you.

If you're on the Do Not Call list, you should already be exempt from robo-calls. Of course, that's not always the case. So will robo-callers really comply with the new FTC rules? Clark doesn't know.

Clark's solution to the problem is that he and his wife never answer their home phone. All calls are screened by an answering machine. He recently cleaned out the answering machine and found only 1 out of 42 calls was legit. And they're on the Do Not Call list!

Several categories of businesses will be exempt from the new FTC rules, including banks and airlines. With banks, they are allowed to robo-call you up to 18 months after the end of your business relationship with them.

There is some controversy over whether calling to inquire about a bank's services constitute the start of a business relationship -- even if you never do any further business. This remains a gray area in the law.

Here's a special warning for parents with children who are under the age of 21. The Los Angeles Times reports that the liquor industry is targeting underage drinkers with a new line of fruity alcohol drinks in pouches.

Clark says the pouches look very similar those of Capri Sun. These fruity concoctions can have up to 17% alcohol. They are pre-mixed; ready to drink; and very easy to conceal.

One member of the American Academy of Child and Adolescent Psychiatry had this to say about the marketing push behind the drinks: "Combining vodka with raspberry drinks and calling it a 'party in a pouch,' who are they appealing to? This isn't the kind of thing adults drink."

So, parents, be warned. You don't want your teenager to become an alcoholic because some distillers are looking to boost their bottom line.

Business Week reports that Morgan Keegan -- a regional brokerage located in Tennessee -- has destroyed the savings of some clients by steering them into inappropriate investments. Morgan Keegan currently is under investigation by regulators in 5 states; facing 6 lawsuits; and undergoing countless arbitrations.

In one instance, an 81 year old looking to safely invest a $250,000 nest egg was put in ultra-risky securities backed by sub-prime mortgages. The result? The nest egg was reduced to $37,000. In another instance, one of Morgan Keegan's supposedly safe funds lost over 80% over the last year.

Some of the brokerage's sales materials have the following verbiage: "This fund is noted for its relative conservative credit posture without excessive risk." Yeah, right.

Clark is not specifically targeting Morgan Keegan; he's just telling you what Business Week said about them. But he is saying that there has been enormous excess with respected banks and brokerages systematically misleading individuals and costing them tons.

During the next few days, he'll be bringing you details about restitution for those ripped off by the brokerage houses. The attorney general of the state of New York is almost single-handedly taking on the task of restitution for people in a number of states.

As always, if you invest in what you understand, you'll run less risk of getting ripped off. Remember that brokerage houses do not have fiduciary duty to you. That simply means they don't have to look out for your best interest.

If you have trouble making wise investment choices, hire a fee-only financial planner who won't gain anything from steering you toward a particular investment.