Scam takes Laconia's name in vain

Attorney General Michael Delaney and Bank Commissioner Peter Hildreth yesterday warned consumers against dealing with Laconia Loan Services, which operates in cyberspace but uses a Laconia address in bilking would be borrowers.

Assistant Attorney General Karen Gorham said yesterday that Laconia Loan Services used a website, which has since hut down, to solicit loan applications. After the application was submitted borrowers received a telephone call advising them their application had been approved, requesting personal information and instructing them to wire a "security deposit" to an address in Spain. With few exceptions, she said, the loans offered were between $5,000 and $15,000 while the "security deposits" ranged from $1,500 to $6,000. Gorham said that after the money was wired, Laconia Loan Services was not heard from again.

Gorham stressed that Laconia Loan Services is an outright scam, not associated with any legitimate or licensed lender and, in particular, not in any way affiliated with Laconia Savings Bank. She said that the Attorney General's Office and the Laconia Police Department had fielded about a dozen complaints since April 16, but added "there are many other victims out there."

The Attorney General's Office and Banking Department arranged the disconnection of Laconia Loan Services toll free telephone number, but warn that it quickly obtained another one. Officials urge consumers not to do business with Laconia Loan Services — or any other loan business on the Internet — without first contacting either the Attorney General's Office or the Banking Department.

Gorham said that the two agencies are conducting an investigation and believe that those responsible are somewhere in the United States. She said that the reasons for asking funds to be wired to Spain remain obscure.