advertisement

Missouri Secretary of State gives tips for safe investment

Monday, February 22, 2010 | 5:58 p.m. CST

COLUMBIA — Secretary of State Robin Carnahan is making an effort to throw the book at fraudsters — especially those making off-book sales. 

Carnahan’s Securities Division has recovered $10 billion in savings in the last few years. That money has been given back to thousands of Missouri-based investors. The Securities Division protects investors from fraud and ensures that all securities are sold legally.

"If markets go up and down, that's a risk we have to take, but breaking the law isn't something we have to take," Carnahan said.

“Off-books sales are the number one top threat to Missouri investors right now,” she said.

Off-books investments occur when a financial adviser offers special investments to clients that are not sold through a firm or do not meet Securities and Exchange Commission requirements. These types of sales are illegal in all cases.

Bernie Madoff’s Ponzi scheme is an example of an off-books investment fraud. Madoff's scheme was the most expensive fraud in history.

A few key facts about investment fraud in Missouri:

  • Senior citizens, especially those on fixed incomes, are the most targeted group for investment schemes, Carnahan said. Boone County Agency on Aging is a good starting place for senior citizens with questions about transferring wealth.
  • Carnahan said the higher number of investment frauds is a reflection of uncertain economic times. The Investment Fraud hot line saw a 40 percent increase in calls in 2009.
  • Fraudsters can be personal acquaintances or friends. “These fraudsters are very sophisticated in gaining these people’s trust and getting control of their money,” Carnahan said. 

Warning signs and ways to protect investments:

  • Reporting suspicious activity is the best way to stop investment fraud. If an investment opportunity seems suspicious or too good to be true, call 800-721-7996 or visit the Investor Protection hot line.
  • The Secretary of State Office has tools to research an adviser. Check out an adviser to find out what they’re selling and verify that they have a clean record in Missouri.
  • Get everything in paperwork. Make sure it includes all fees, costs and charges. 

Carnahan is visiting several other cities in Missouri to promote awareness for investment fraud. For other tips and warnings for investors, see the official Web site for the Missouri Secretary of State.


Like what you see here? Become a member.


Show Me the Errors (What's this?)

Report corrections or additions here. Leave comments below here.

You must be logged in to participate in the Show Me the Errors contest.


Comments

Scott Johnson February 22, 2010 | 10:48 p.m.

If you think Madoff has damaged others, here's another example that has ripped off millions of people for several decades, to the tune of 10s of billions of dollars:

Amway is a scam, and here's why: Amway pays out as little money as they can get away with, so they support the higher level IBOs ripping off their downline via the tool scam.

As a result, about 99% of IBOs operate at a net loss, while the top 1% make several TIMES more from their Amway tool scam than from the Amway products. This was made illegal in the UK in 2008, but our FTC is unable to pull their heads out of their butts to stop it here.

Read about it on my blog, I suggest you start here: http://tiny.cc/D5oJh and forward the information to everyone you know, so they don't get scammed.

(Report Comment)

Leave a comment

Speak up and join the conversation! Make sure to follow the guidelines outlined below and register with our site. You must be logged in to comment. (Our full comment policy is here.)

  • Don't use obscene, profane or vulgar language.
  • Don't use language that makes personal attacks on fellow commenters or discriminates based on race, religion, gender or ethnicity.
  • Use your real first and last name when registering on the website. It will be published with every comment. (Read why we ask for that here.)
  • Don’t solicit or promote businesses.

We are not able to monitor every comment that comes through. If you see something objectionable, please click the "Report comment" link.

You must be logged in to comment.

Forget your password?

Don't have an account? Register here.

advertisements