What's been a bear market on wall street, state securities regulators say, has created a bull market for fraud.
Today state securities regulators are warning that con-artists are looking to capitalize on that trend.
And the regulators have some advice to help investors steer clear of market scams.
In its top ten investment frauds state securities regulators urge investors to research both what they're buying, and who is selling.
Joseph Borg/N.Amer. Securities Administrators Assoc-- "CALL YOUR STATE SEC REG TO CHECK THAT BOTH THE SELLER AND THE INVESTMENT ARE REGISTERED
As, look out for unexplained fees and unauthorized trades.
Regulators warn conflicting balances revealed fake statements and brokers hiding losses.
State regulators say with more complaints, and more investigations underway, investment fraud should be a national priority.
State regulators expect more oversight from Washington is ahead, and in the meantime urge investors to do their homework.
If it sounds too good to be true, they say, watch your wallet.
The top ten scams, according to the North American Securities Administrators Association, are:
TOP 10 SCAMS
- 1. Unlicensed Individuals, such as independent insurance agents, selling securities
- 2. Unscrupulous Stockbrokers
- 3. Analyst Research Conflicts
- 4. Promissory Notes
- 5. 'Prime Bank' Schemes
- 6. Viatical Settlements
- 7. Affinity Fraud
- 8. Charitable Gift Annuities
- 9. Oil and Gas Schemes
- 10. Equipment Leasing
To check out an investment or salesperson, contact your state securities regulator.
August 26, 2002
