Secretary of state lays out investor threats

Missouri Secretary of State Robin Carnahan yesterday published the annual list of the top threats facing Missouri investors.

The list is compiled by the secretary of state's Securities Division, which reviews complaints, investigations and enforcement actions annually to identify investor threats, according to a news release.

The 2012 list includes:

• online pitches about startup companies with no operating history and limited disclosures;
• salespeople who are not licensed to sell securities offering questionable recommendations and promises;
• investment offers for risky startups without financial statements, a thorough business plan, owner background or other traditional documents;
• brokers that warn investors to exit traditional investments and instead invest with a specialized broker offering a special or limited opportunity investment; and
• commodities and futures that promise or guarantee returns in gold, oil/gas futures and other commodities in spite of the fact that the nature of market fluctuations make it impossible to guarantee investments.

Efforts by Carnahan’s office have netted a more than $2 billion return to Missouri investors since 2005, according to Ryan Hobart, director of communications.

Carnahan advocates that the best line of defense against fraud is investor education.

“Scam artists are constantly looking for new ways to defraud investors out of their hard-earned money,” Carnahan said in the release. “Understanding these threats will help Missourians protect their savings.”