Today's top 10 scams victimize Missouri workers

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Missourians work hard for their money. Working Missourians go to their jobs every day to provide for their families, themselves, and their future retirement. Our senior citizens depend on the rewards of a lifetime of work.|ret||ret||tab|

Con artists who push fraudulent investments are a clear and present danger to the financial security of all honest people. Every day, the Securities Division of my office does battle against those who would prey upon hardworking Missourians.|ret||ret||tab|

We all should be very skeptical of any get rich quick' scheme. Generally, the higher the rate of return, the greater the risk. When someone solicits you as a potential investor, always call the Securities Division in my office to learn more. To investigate an investment or salesperson, just contact our Investor Hot line at 800-721-7996. Every day we receive calls that encourage legitimate investment and protect Missourians from risky or fraudulent schemes.|ret||ret||tab|

Here are the top 10 investment scams we are combating at present. The con artists selling these scams are moving out of telephone boiler rooms and onto Main Street, often using unsuspecting independent agents as sellers. The vast majority of agents look out for their clients, but a growing minority are being lured by marketing claims that are misleading or false.|ret||ret||tab|

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Unlicensed individuals |ret||ret||tab|

To verify that a person is licensed or registered to sell securities, call our Securities Division at the number above. If the person is not registered, do not invest. I have issued several cease and desist orders since the first of the year on insurance agents who were selling securities without the proper license.|ret||ret||tab|

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Oil and gas offerings|ret||ret||tab|

Promoters use the worldwide increase in oil prices as part of their pitch to sell interests in oil and gas offerings. This is a common technique-taking a real news story like the rising cost at the pumps and adding a fabricated get-rich-quick' scheme.|ret||ret||tab|

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Payphone and ATM sales|ret||ret||tab|

Missouri and 24 other states are taking action against companies and individuals that defrauded 4,500 people out of $76 million for coin-operated customer-owned telephones. Investors leased payphones for between $5,000 and $7,000 and were promised annual returns of up to 15 percent. Most of these appeared to be nothing but ponzi schemes.|ret||ret||tab|

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Promissory notes|ret||ret||tab|

Short-term debt instruments issued by little-known or even nonexistent companies promise high returns (upwards of 15 percent monthly) at little or no risk. |ret||ret||tab|

In one case, the perpetrators diverted the money to offshore bank accounts, made first-class business trips to China, India and Greece and bought expensive cars after gaining their victims' trust.|ret||ret||tab|

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Internet fraud |ret||ret||tab|

Con artists use the Internet to "pump and dump" thinly traded stocks and bogus offshore "prime bank" investments and to publicize pyramid schemes. Investors should always ignore anonymous financial advice on the Internet and in chat rooms.|ret||ret||tab|

Ponzi/pyramid schemes|ret||ret||tab|

Always in style, these swindles promise high returns, but the only people who make money are the promoters who use money from previous investors to pay new investors. Inevitably, the schemes collapse.|ret||ret||tab|

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"Callable" CDs|ret||ret||tab|

These certificates of deposit (often sold by brokers) will not mature for 10 to 20 years unless the bank, not the investor, "calls" or redeems, them. Redeeming early may result in large losses, as much as 25 percent of the principal. Sellers often fail to adequately disclose risks and restrictions.|ret||ret||tab|

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Foreign Currency Trading |ret||ret||tab|

There is a legitimate market for foreign currency. Foreign currency futures can either be traded on recognized futures exchanges or in the "Internet market" trading between large banks and corporations that does not involve individual or retail customers. The Commodity Futures Trading Commission regulates the legitimate futures trading, but there are plenty of fraudulent promotions. |ret||ret||tab|

Perpetrators of these schemes often attract consumers through advertisements in local newspapers or radio or via Internet sites offering high-return, low-risk investments.|ret||ret||tab|

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Prime bank schemes|ret||ret||tab|

Scam artists promise triple-digit returns through access to the investment portfolios of elite banks. |ret||ret||tab|

Purveyors often target conspiracy theorists by promising access to the "secret" investments used by famous international families like the Rothschilds or the Saudi royal family.|ret||ret||tab|

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Investment seminars|ret||ret||tab|

Some are legitimate, but often the people getting rich are those running the seminar, from admission fees and the sale of books and audiotapes. These seminars are marketed through newspaper, radio and television advertisements and "infomercials" on cable television.|ret||ret||tab|

If something sounds too good to be true, it probably is. We are here to help you make prudent financial decisions, and we are as near as your telephone, at 800-721-7996.|ret||ret||tab|

|bold_on|(The preceding article was provided by the office of Missouri Secretary of State Matt Blunt.)|ret||ret||tab|

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