"The knowledge, attention to detail and a sense of skepticism is a triple threat to the fight against investment fraud," said Bill Beatty, director of securities for the State Department of Financial Institutions. The service offers basic information about the values that sells or provides investment advice and details about the products offered.
promissory notes, trust deeds, OPCIs. While fraudulent promissory notes to investors of the two things that seem to want more security and higher performance can not be worth the paper they are printed on. Sponsors may require an investment is very risky, because the note is secured by a trust, but investments, rarely without risk. For example, developers can not register a vote of confidence to investors and guarantees the total amount paid for the bonds that now exceed the value of the property.
Oil and gas schemes. Oil and gas investments tend to be very risky and not suitable for small investors who can not afford the risk. Some developers, many of whom have had previous encounters with regulators have tried to structure their "joint venture" or "partnership" to avoid securities regulation and to deprive investors of important protections. investments in securities that offer profit-sharing oil and gas joint may be legitimate, but even when the project funds is authentic, the earned income can be absorbed by sales commissions as high paying the developer and questionable expenditures "not constrained by the managing partner.
Related Stories
