CrowdFunding - Securities group releases list of top investment scams

posted Sep 8, 2012, 7:36 PM by David Khorram

Illegitimate crowdfunding requests and investment-for-visa schemes are among the new financial products and practices the North American Securities Administrators Association said are threatening to exploit unsuspecting investors.

In its 2012 list of top investor threats, the association issued guidance to help people avoid the financial pitfalls and encouraged people to report the deceptive practices to regulators. The Indiana Secretary of State's office is a member of the association.

Other pitfalls on the list include unsolicited communications to invest in gold and other precious metals, risky oil and gas drilling programs, and real estate investment schemes.

Indiana Secretary of State Connie Lawson said investors should independently verify any investment opportunity as well as the background of the person and company offering the investment. State securities regulators provide detailed background information about those who sell securities or give investment advice about the products being offered.

"Investors should insist on working only with licensed brokers and investment advisers in dealing with both traditional and alternative securities investments, and should quickly report any suspicion of investment fraud to our office," Securities Commissioner Chris Naylor said.

For more information about the top pitfalls facing investors, visitwww.in.gov/sos/securities/files/Investor_Traps.pdf.


Posted from: http://www.nwitimes.com/business/local/securities-group-releases-list-of-top-investment-scams/article_369d2442-a197-54e6-a775-ba6beb1638e4.html

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