STATE SECURITIES REGULATORS WARN OF OPPORTUNISTIC INVESTMENT SCAMS FOLLOWING ATTACKS ON WORLD TRADE CENTER, PENTAGON

 

In the wake of terrorist attacks in New York and near Washington, D.C., Ohio Securities Commissioner Debbie Dye Joyce is warning investors to be on the lookout for opportunistic scams similar to those associated with the Year 2000 computer bug.

 

Cold-calling telephone salespeople, advertisements, or Internet postings that tout commodities, exotic financial products, or supposed anti-terrorist technologies should be a red flag for investors, Commissioner Dye Joyce said.  Investors should be especially wary of enticements to send their money offshore to so-called “safe havens,” she added.

 

“In times of tragedy, confusion, fear and uncertainty, there are always those who will attempt to prey on the investing public,” she said.  “In the wake of last week’s tragedies, investors should resist the temptation to make hasty decisions based upon emotion.  Above all, always remember to investigate before you invest.”

 

Recalling that many con artists exploited fears associated with the Year 2000 computer bug to tout investments in precious metals, emergency preparedness scams and non-existent technology companies, the Ohio Department of Commerce’s Division of Securities urges investors to:

 

·        Hang up on aggressive cold callers promoting “safe” investments with “guaranteed returns” such as precious metals, oil, or gas and ignore unsolicited e-mail or Internet chat room talk about small companies with new anti-terrorist technologies or products.

 

• Call the Ohio Division of Securities Investor Protection Hotline at (800) 788-1194 to ask if the seller is licensed to sell securities in Ohio and if the security is properly registered. 

 

• Request written information that fully explains the investment, such as a prospectus or offering circular. The documentation should contain enough clear and accurate information to allow you or your financial adviser to evaluate and verify the particulars of the investment.

 

• Use common sense. Some things really are too good to be true. Get a professional, third-party opinion when presented with investment opportunities that seem to offer unusually high returns in comparison to other investment options. Pie-in-the-sky promises often signal investment fraud.

 

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