SCHEMES TARGET ETHNIC GROUPS.

Byline: Daily News staff and Wire Services

Minorities should beware of growing financial schemes in which swindlers who belong to an ethnic or religious group play on the loyalties of group members, state securities regulators said Wednesday.

In such capers, swindlers try to earn the trust of Asian- and African-Americans, Latinos and other minorities, or religious groups.

New immigrants often are viewed as easy targets, Mark J. Griffin, president of the North American Securities Administrators Association, said at a news conference in Washington, D.C.

``If you are a member of an ethnic minority group, you need to know that just because someone shares your ancestry or race, that's not enough of a reason to trust that person with your money,'' he said. ``Don't be fooled. Affinity-group swindlers play the loyalty angle for all it's worth.''

These schemes have defrauded people of ``tens of millions of dollars,'' according to a spokesman at NASAA.

In the Los Angeles area, state regulators are investigating 20 cases involving companies and individuals who sold bogus investments in foreign currencies and precious metals in Chinese, Korean and Filipino communities in April.

The investors were promised no-risk investments, said Julie Stewart, a spokeswoman with the state Department of Corporations.

Investments ranged from $15,000 to $300,000; investors lost 90 percent of their money, she said.

The state is seeking $2.75 million in restitution and civil penalties from the 20 cases.

One of the defendants is A.F. Data Services in Glendale, formerly known as Glenoaks Data Services Inc. A.F. Data employees charged in the case were Paul Mok, Romeo Ancheta, Wai Lung Wong (a k a Finsen Wong), Mak Ki Hung, Gilbert Guerrero, Luz Bago, Ki Mi Min, Yock Thing Wong (a k a Jeanette Wong).

In another case, Philip E. Harmon defrauded more than 230 investors of around $14 million in Arizona, California, Idaho, Iowa, Indiana, Kansas, North Carolina, Oregon, Texas, Utah and Washington. Harmon pleaded guilty to conspiracy, sales of unregistered securities and tax fraud Oct. 31.

Griffin's group advised investors to check with the state or, in Canada, a provincial securities agency, for help before investing any money.

Telephone numbers of the state and provincial agencies can be obtained from government listings in phone directories, by calling toll-free 1-888-84-NASAA, or visiting the group's World Wide Web site at www.nasaa.org.