NASAA Reports on Top Investor Scams in 2015

The North American Securities Administrators Association ("NASAA") released its annual list of top investor threats. NASAA urged investors to be cautious when approached with unsolicited investments such as promissory notes, oil and gas deals, and real estate investment opportunities.

NASAA made the following recommendations concerning the five "most problematic products, practices or schemes":

• Unregistered Products/Unlicensed Salesmen: The offer of securities by an individual without a valid securities license should be considered a "red alert for investors."
• Promissory Notes: Average investors should be cautious about promissory note offers with a duration of nine months or less, which in some circumstances do not require registration.
• Oil/Gas Investments: Fraudulent oil and gas deals frequently are structured with a limited partnership (or other legal entity) in one state, the operation and physical presence of a field in a second state, and offerings made to prospective investors in states other than the initial two states.
• Real Estate-Related Investments: Troublesome real estate-related investments that have been identified by securities regulators include non-traded real estate investment trusts, timeshare resales and brokered mortgage notes.
• Ponzi Schemes: The only people who are certain to make money on a Ponzi scheme are the promoters who set it in motion.

NASAA President and Maine Securities Administrator Judith Shaw said this about investing cautiously: "Before making any decisions with your money, ask questions, make sure you understand the risks, and contact your jurisdiction's securities regulators for detailed background information about those who sell securities or give investment advice, as well as about the products being offered."