Be on lookout for financial con artists

When Ohioans pick up a newspaper or turn on the television news virtually any day, there is a story about a con artist who exploited the public’s trust for their personal financial gain.  In connection with this week’s observance of National Consumer Protection Week (March 6-12), the Ohio Department of Commerce is encouraging Ohioans to be on guard for potential con artists in their lives.

“Con artists do not have a conscience.  It doesn’t matter who you are – a lifelong friend, a family member or a trusted associate – a con artist will do anything to separate you from your money,” said Ohio Department of Commerce Director David Goodman.  “Before you invest, make a confidential call to the Division of Securities to check on the promoter and the investment product.”

While there are thousands of legitimate, licensed securities professionals operating in Ohio who help their clients make wise investment decisions,  most securities fraud cases prosecuted by the Division do not involve those firms or individuals. Rather, most scams involve unregistered investment products sold by unlicensed individuals.  To avoid being a victim of those types of scams, Ohioans can simply call the Division of Securities’ Investor Protection Hotline at 877.NVEST411 (877.683.7841) to confirm that the promoter is properly licensed and that the investment product is registered or exempt from registration.  Ohioans can also visit www.conartist.ohio.gov for additional information.

“While investor research should start with a call to the Division, it should not end there,” Securities Commissioner Andrea Seidt said.  “Investors should ask for and actually check with a promoter’s references and trust their instincts when an investment opportunity sounds too good to be true.  With every investment, investors need to take the time to understand the risks and benefits by reading the prospectus or offering circular in full before they invest.  ‘High return’ investments often carry high risk, including the risk that the investment may yield no return or, worse, a substantial loss to the investor.”