November 13, 2014- In a recent article in the Idaho Statesman, Gavin Gee , Director of Finance for the Idaho Department of Finance, warned investors to be wary unlicensed agents selling unregistered products to unsuspecting investors.
Gee focussed on four emerging investment scams:
- Binary Options– these are option contracts with a payout dependent upon whether an underlying asset, such as the company’s stock price or a stock index, increases or decreases.
- Marijuana industry investments-Scammers our investors with aggressive and overly optimistic projections based upon false or misleading information hoping to pump up the price of a thinly traded company. Once that is accomplished the promoter dumps the many shares he purchased at a very low price, leaving the new investors holding the bag.
- Stream of Income investments-retirees looking for monthly income are being sold income streams, such as pension payments of government disability payments.
- Digital currency and cybersecurity risks-Bitcoin is the most well known. It came on the market at $10, peaked at $1,200 a unit in late 2013 and is about $400 now.
Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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