NASAA: Watch Out For Fraudulent Investments Promising Higher Returns

by Wall Street Fraud on February 21, 2012

Philadelphia Securities fraud attorneyWith interest rates projected to remain low until at least late 2014, the North American Securities Administrators Association (NASAA) cialis price is warning investors to be on the lookout for fraudulent investments promising higher yield or returns.

According to NASAA, state securities regulators are worried that individuals who depend on fixed income investments, particularly seniors, may be enticed to trade their slower growing but safe investments for riskier alternatives, without fully understanding the potential consequences.

“Investors running away from low yields on fixed investment products risk stumbling into the arms of unscrupulous salespeople promising low risk and high returns,” said Jack E. Herstein, NASAA President and Assistant Director of the Nebraska Department of Banking & Finance Bureau of Securities. “Don’t chase the offer of high yield or returns into a dead-end investment.”

“When evaluating any investment, it pays to remember that risk and reward go together,” Herstein said. “Anyone promising high yield or high returns with little or no risk should be approached with a high degree of skepticism.”

Therefore, before purchasing any investment, NASAA reminds investors to ask the following questions: 

  • Are claims made for the investment realistic? Use common sense and get a professional, third-party opinion when presented with investment opportunities that seem to offer unusually high returns in comparison to other investment options.
  • Has the seller given you written information that fully explains the investment? Request written information that fully explains the investment, such as a prospectus or offering circular. The documentation should contain enough clear and accurate information to allow you or your investment adviser to evaluate and verify the particulars of the investment.
  • Are the seller and investment licensed and registered in your state? Call your state or provincial securities regulator to find out. If they are not, they may be operating illegally.

If you have been misled regarding the risks associated with an investment product, 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, please contact us 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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