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October 4, 2002
The 10 most common ways investors get duped. State regulators urge vigilance and advise those making investments to check whether agents are licensed.
- Unlicensed Securities Dealers - Independent insurance agents, accountants, financial advisers who sell stock without a license.
- Unscrupulous Stockbrokers - Brokers who sell inappropriate investments, add unexplained fees, make unauthorized trades.
- Research Analyst Conflicts - Investment bankers who lean on analyst colleagues to favor client companies, misleading investors.
- Fraudulent Promissory Notes - Con artists who sell short-term bonds promising high returns issued by nonexistent companies.
- Prime Bank Schemes - Money managers who claim to track the same investments as elite banks, promising triple-digit returns.
- Viatical Settlements - Brokers who sell life insurance policies of patients who lie to insurance companies about their prognosis.
- Affinity Fraud - Churches that misdirect donations, prey on desire to help own community.
- Charitable Gift Annuities - Fake charities that lure those who want tax breaks through charitable contributions.
- Oil and Gas Schemes - Brokers who induce investors to put money into wells that haven’t produced in years.
- Equipment Leasing - Contract-sellers who stick investors with phony leases on ATM machines, pay phones, or Internet kiosks.
According to the 9-20-02 issue of Business Week, these are the Top 10 investment scams. Buyers beware! Let’s talk about a long-term approach to building wealth with a three-pronged approach to asset allocation, 1) protecting you against deflation; 2) protecting you against inflation; and 3) growth during periods of prosperity. Call now.
Robert Bubnovich, Registered Investment Advisor. 949-725-2965
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