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NEWARK
- The NJ Bureau of Securities today released
its annual list of financial products and
practices that threaten to trap unwary investors,
many by taking advantage of investors troubled
by lingering economic uncertainty and volatile
stock markets.
“Con
artists follow the news and seek ways to
exploit the headlines to their advantage
while leaving investors holding an empty
bag,” said Bureau Chief Abbe R. Tiger.
Tiger
said headline-related investor complaints
reaching state securities regulators nationally
include questionable claims, such as: “Realize
safety and appreciation in gold;”
“Wave energy: the future to power
our homes;” “Synthetic fuels
take the oilman out of our pockets;”
and “Invest in foreclosed homes, help
others and make a fortune!”
“Promoters
often offer investors an opportunity to
get in on the ‘ground floor’
of new technology or ideas to help others
and make a great economic return,”
Tiger said. “Unsuspecting investors
can be lured into these schemes, especially
if they sound familiar. These offerings
require careful research and a strong reminder
that if it sounds too good to be true, it
probably is not true, nor will it be profitable
to anyone but the promoter.”
The
following alphabetical listing of the Top
10 financial products and practices that
threaten to trap unwary investors was compiled
by the North American Securities Administrators
Association (NASAA), of which NJ Bureau
of Securities is a member.
PRODUCTS: distressed
real estate schemes, energy investments,
gold and precious metal investments, promissory
notes and securitized life settlement
contracts.
PRACTICES: affinity fraud,
bogus or exaggerated credentials, mirror
trading, private placements and securities
and investment advice offered by unlicensed
agents.
Tiger
urged investors to learn the warning signs
of investment fraud and independently verify
any investment opportunity as well as the
background of the person and company offering
the investment. The N.J. Bureau of Securities
provides detailed background information
about those who sell securities or give
investment advice, as well as about the
products being offered.
“Investors
should do business only with licensed brokers
and investment advisers and should report
any suspicion of investment fraud to us,”
Tiger said.
Additional
information on how to protect yourself from
investment fraud is available on the NJ
Bureau of Securities’ website, www.njsecurities.gov
, or by calling 866-446-8378.
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