Beware: Investment Fraud
Deceptive pitches for investments often misrepresent or leave out facts in
order to promote fantastic profits with little risk. No investment is
risk-free and a high rate of return means greater risk. Before investing,
get written information such as a prospectus or annual report. Beware if a
salesperson:
- Encourages you to borrow money or cash in retirement funds to invest
- Pressures you to invest immediately
- Promises quick profits
- Says that the disclosure documents required by federal law are just a formality
- Tells you to write false information on your account form
- Sends material with typos or misspellings or not printed on letterhead
- Does not send your money promptly
- Offers to share inside information
- Uses words like "guarantee," "high return," "limited offer," or "as safe as a CD"
- Uses the phrase "this investment is IRA approved"
- Claims "off-shore investments are tax-free and confidential"
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