The North Carolina secretary of state's securities division has listed the Top 10 investment scams in the state.
1. The Ponzi Scheme is #1 in frequency, variations & notoriety. It pays high returns to initial investors with money solicited from later investors.
2. Real Estate Investment Schemes offer to help homeowners avoid foreclosure - for a pre-paid fee. Seniors are being conned into using reverse mortgage proceeds on worthless investments.
3. Private Placement Offerings, can raise business capital, but can also rob millions from investors through false & misleading representations.
4. Gold Bullion & Currency Scams include non-existent gold deals & complex foreign currency exchanges.
5. Natural Resource Investments create energy schemes from oil & natural gas finds to wind & solar energy, to technology development.
6. Entertainment Investment cons involve movies, infomercials & internet gambling sites.
7. Leveraged Exchange-Traded Funds use exotic financial instruments & promise high returns.
8. Life Settlements and Viaticals need careful scrutiny. Investors buyout another’s life insurance to provide funds for medical or other expenses.
9. Short-term Commercial Promissory Notes claim to be insured or guaranteed, but insurers may not exist, be outside the US, or not licensed here & can’t provide guarantees.
10. Speculative Inventions & New Products are unsuitable for retirement funds despite promises of high returns.
Remember that if an investment sounds too good to be true, it probably is. Always contact the Securities Division at (919) 733-3924 or toll-free at (800) 688-4507 for information about securities sellers and their products. Or visit our website: www.sosnc.com. When it comes to investing, verify everything and everyone before you give them one cent.