State Regulators Release List of Top Investor Frauds

by Wall Street Fraud on August 30, 2012

Philadelphia Securities fraud attorneyThe North American Securities Administrators Association (NASAA) recently revealed its annual list of financial products and practices that pose the highest risks to investors. The list includes several new threats as well as other persistent threats.

The list includes several threats created by regulatory changes intended to bolster the economy, such as the Jobs Act. NASAA warns fraudsters may use these new laws to take advantage of investors.

“A con artist will use every trick in the book to take advantage of unsuspecting investors, including exploiting well-intended laws, in order to fatten their wallets,” said Jack E. Herstein, NASAA President and Assistant Director of the Nebraska Department of Banking & Finance, Bureau of Securities.

Below are the top ten threats:

New Threats

  • Crowdfunding and Internet Offers
  • Inappropriate Advice or Practices from Investment Advisers
  • Scam Artists Using Self-Directed IRAs to Mask Fraud
  • EB-5 Investment-for-Visa Schemes

Persistent Threats 

  • Gold and Precious Metals
  • Risky Oil and Gas Drilling Programs
  • Promissory Notes
  • Real Estate Investment Schemes
  • Reg D/Rule 506 Private Offerings
  • Unlicensed Salesmen Giving Liquidation Recommendations

Please stay tuned to this blog in coming weeks, as we will look at several of these investor risks in more depth. Tomorrow, we will look at the top new threat—crowdfunding.

If you have been the victim of any of these schemes, we may be able to help you recover your losses. Contact us today at 215-839-3953 for a free consultation.

At Wall Street Fraud, we are dedicated to offering assistance to those who have been hurt by improper corporate or investment practices.

If you have been the victim of stock brokerage fraud, securities fraud, mutual fund fraud, stockbroker fraud, annuities fraud, or any other type of investment fraud or negligence, please contact our securities fraud attorneys today for a free case evaluation. Our talented and aggressive legal and professional staff is eager to help you recover your losses.

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