Griebel says it's easy to see how investors believed their money was safe.
"BFA would say, 'We have one of the largest CPA firms in the world auditing us. They've given us a clean bill of health.'"
Five of BFA's key officials have been indicted on charges of fraud, theft and illegally conducting an enterprise. Three people who represented BFA or one of its subsidiaries have pleaded guilty to felony charges and will testify for the prosecution.
Joseph Borg, director of the Alabama Securities Commission, investigated another affinity scam that targeted church members.
Tampa, Fla.-based Greater Ministries International was a massive pyramid scheme that bilked some 23,000 people, in almost every state and more than a dozen countries, out of about $570 million. Five of the church's leaders have been convicted on federal conspiracy and fraud charges.
Borg calls these religion-based affinity schemes "pennies on earth and credit in heaven.
"Affinity scams are very popular. When the stock market is out of favor and interest rates are low, people look for better investments," Borg says. "Along comes a faith-based, guaranteed, God's plan for Christians. It appears to be a good investment -- with the blessings of the church.
Beware the forked-tongue sales pitch
"Most pitches by affinity groups are two-pronged -- you can make a profit and you can do good in the world, helping food banks, building churches, alcohol and drug rehabilitation."It only takes a few people to scam millions. The same names pop up time and time again."
The effect on victims is devastating -- financially, emotionally, and even physically.
"My blood pressure went up, I have insomnia and I went into a deep, deep depression from which I haven't fully recovered," says Forrest Bomar.
"I grew up in the Depression. I was taught to save, save, save for a rainy day. I did that, and now it's gone."
Don't get taken by scammers. The U.S. Securities and Exchange Commission and the North American Securities Administrators Association have tips to help investors steer clear of affinity scams -- or any financial scam, for that matter.
- Are the seller and the investment registered and licensed in your state? Call your state securities regulator to find out. If they are not, they might be operating illegally. To get the name and number of your state securities regulators, visit North American Securities Administrators Association.
- Check out everything, no matter how trustworthy the person is who brings the investment to your attention. Never make an investment based solely on the recommendation of a member of an organization, or religious or ethnic group to which you belong. Investigate the investment thoroughly, and check the truth of every statement you are told about the investment. Be aware that the person telling you about the investment may have been fooled into believing that the investment is legitimate when it is not.
- Do not fall for investments that promise spectacular profits or "guaranteed" returns. If an investment seems too good to be true, it probably is. Be extremely leery of any investment that is represented to have no risks; very few investments are risk-free. Generally, the greater the potential return an investment offers, the greater the risks of losing money on the investment.
- Be skeptical of any investment that isn't fully documented in writing. You should also be suspicious if you are told to keep the investment opportunity confidential.
- Don't be pressured or rushed into buying an investment before you have a chance to think about -- or investigate -- the "opportunity." Just because someone you know made money, or claims to have made money, doesn't mean you will too. Watch out for investments that are pitched as "once-in-a-lifetime" opportunities, especially when the promoter bases the recommendation on "inside" or confidential information.