Stay on Guard Against Fraud
Ohio Investigators Uncover Bogus Investment Schemes
The plunge in the stock market, coupled with the loss of thousands of jobs across the state, is expected to make 2009 a ripe time for scammers and investment fraud, warns the Ohio Department of Commerce (DOC), Division of Securities.
“These are difficult economic times and Ohioans need to be alert to the warning signs of get-rich quick schemes and investment fraud,” said Ohio Securities Commissioner Andrea Seidt. “While it may be tempting to try and quickly make up for any investment losses incurred in 2008, I encourage investors to be on guard against investment scams that promise unrealistic returns with little or no risk.”
In Ohio, according to the DOC, investigators uncovered investment scams that resulted in a 35-count indictment against a former Columbus resident for fraud and mishandling more than $187,000. Charges of securities fraud were filed against another former Columbus stockbroker accused of illegally selling promissory notes. Last April, a Hamilton man was sentenced to 20 years in prison after pleading guilty to forgery, perjury and selling unregistered securities. According to the DOC, the former insurance agent bilked dozens of investors out of millions.
Ohioans who lose jobs in a well- publicized layoffs should be especially careful, Commissioner Seidt said, as scammers often target people in such circumstances.
“If you have recently lost your job through a mass layoff that received media attention, you should be particularly skeptical when receiving unsolicited offers that promise the investment of a lifetime,” she said. “Unfortunately, there are individuals who prey upon the fears of dislocated workers in hopes of gaining control of their 401(k) funds or their severance package.”
“Be skeptical when promised unusually high or unrealistic returns,” the DOC advises. “Be leery of family and friends singing the praises of a particular securities salesperson or investment. Keep detailed notes on conversations related to investment accounts, and close tabs on your accounts.”
Learn more about protecting yourself on the Division of Securities Web site.
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