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Investment Fraud

Americans lose $40 billion yearly to investment fraud due to lack of awareness, poor planning, rash decisions, and trusting easily. Doctors, lawyers, teachers, college students, and the elderly are all victims. Learn to spot red flags, avoid fraudulent offers, and report suspicious activities to protect your investments. Utilize financial education resources and always investigate before investing. Don't fall for outrageous promises or high reward schemes with low risk. Stay informed and safeguard your finances.

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Investment Fraud

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  1. Investment Fraud

  2. Americans lose an estimated each year to investment fraud $40 billion

  3. Why? • Lack of financial awareness • Poor planning early in life • Low rates of return • Certificates of deposit, savings accounts, etc. • Rash decisions • “Easy money” • Too trusting • Fear

  4. The Victims Include... • Doctors • Lawyers • Teachers • College Students • Business People • Retired/Elderly No one is immune to fraud. Anyone can become a victim.

  5. “Double your money in ninety days!” This is a risk-free guarantee High reward with low risk You are lucky to be getting in on the ground floor Outrageous Promises

  6. Financial Professionals • Unsuitable investments • Poor investment advice • Fraudulent broker acts • Insurance agents/unregistered agents

  7. What Can Be Done? • Report suspicious or fraudulent activities • Check into the investment opportunities and the people selling them

  8. What Can Be Done? Financial Education Investigate Before You Invest • www.crimes-of-persuasion.com • www.ihatefinancialplanning.com • www.fl2010.com • www.jumpstart.org • www.econed-in.org • www.sec.gov • www.nasaa.org • www.sos.IN.gov

  9. Investment Myths • High reward with no risk • Scams do not happen to smart people • .com companies are a sure bet • This investment is guaranteed/insured • No written information is available • No securities license or registration is necessary to sell this

  10. Red Flags • This offer is only good today/this is a limited-time opportunity • Just give me your credit card and checking account number • This is only available to a select group • I get nothing out of this deal

  11. Red Flags • Do not tell anyone -- not even family • I will come to you; you don’t have to come to me • Foreign banks pay great interest rates and have no taxes associated with them • This is “insider” information

  12. Common Types of Fraud • Pyramid Schemes

  13. Common Types of Fraud • Ponzi Schemes • Charles Ponzi • Don Pratt • International Prime Bank Schemes • Royal Meridian Bank • Affinity Fraud • The Church of God, Inc. • Promissory Notes • James Carpenter

  14. Common Types of Fraud • Unscrupulous Brokers • Poor advice • Unsuitable investments • Senior Fraud • Variable and charitable gift annuities • Viaticals • Promissory notes • Insurance Agents/Unlicensed Agents • Any agent selling securities must be licensed through the Secretary of State Todd Rokita’s Office

  15. Avoiding Fraud • Hang up the phone • Ask questions! • Remember, those touting investments are not doing it to help you out • Contact Secretary of State Todd Rokita’s Office for information regarding the opportunity and the person offering it

  16. Fraud Hotline (800)223-8791 Website www.sos.IN.gov Location 302 W. Washington St. Room E-111 Indianapolis 46204 Report Investment Fraud Check On Securities Franchises Loan Brokers Exempt Filings Broker Dealers Investment Advisors Enforcement Actions Secretary of State Todd RokitaWe Are Here to Help Hoosiers!

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