Ask an Expert

What are the ways to best protect myself from getting scammed?

• Educate yourself. If you don't know the basic nature and risk VS return characteristics of traditional investments. Higher the return the higher the risk. If an investment sounds "too good to be true", it probably is! Avoid the seduction of "alternative investments."
• Map out your goals before shopping or investing. What is the purpose and time horizon for the planned investment and your need for liquidity?
• Who are you considering investing with? Never do business with a stranger you've only met over the phone or internet. You've been detecting clues about liars all your life by looking people in the eye and watching how they respond
• Affinity fraud occurs when investors relax their investment scrutiny because they know the salesperson from church, civic, social or on-line organizations.
• Ask tough questions. How is the salesperson compensated? If you don't understand the investment, don't invest
• Don't be rushed. Most deals can wait until tomorrow. Be suspicious of "hot tips" or "one time offers".

Questions / Answers

Just click on a question to view the answer.

• Is it possible to get a non-recourse loan using Senior LIfe Settlement Bonds as the collateral?
  • Thank you for the question on life settlement bonds. The life settlement bonds are a security, and many financial institutions are willing to extend credit using securities as the collateral. Ultimately the decision on whether or not to accept the bonds as collateral will be up to the loan officer at the bank or other financial institution where you are seeking to secure the loan. We suggest you contact the loan officer at your bank to discuss further details with them.
• Is an itinerary available for the utah 2011 conference?
  • We should have that posted on the site during the month of December. Stay tuned. thanks
• Is ashworth college a fraud?
  • The Utah Division of Securities ("Division") has no record of an "ashworth college" and your inquiry does not seem to indicate any securities transaction is involved. Moreover, the Division does not regulate educational institutions. Generally, colleges must meet accreditation standards issued by organizations that can be found through the U.S. Department of Education. Unless there is further information about "ashworth college" that would indicate a securities transaction, please contact the U.S. Department of Education for further information.
• When can I help someone raise money for their business or investment opportunity?
  • It is critical that you always do your diligence before you invest or help anyone raise money for investment opportunities. If you have a specific question about a type of opportunity, please feel free to http://www.securities.utah.gov/investors/index.html first.
• What are the ways to best protect myself from getting scammed?
  • Equip yourself with vital anti-fraud awareness and education at the upcoming June 30th Fraud College Conference. It will be worth it.
• Can a person get the fraud college information online instead of going to orem to utah valley university for the event?
  • The FraudCollege.org community web site is becoming a great source for information and alerts. However, the regional Fraud College Conference at Utah Valley University still is the best way to equip yourself and your family with anti-fraud education and awareness.
• How do I say no to a friend or individual who I don't have good feelings about or don't understand the product or service?
  • The Fraud College Conference had Carolyn Jessop talk specifically about the challenge of saying No under pressure. We will try to get some video snippets of her message up on the web site soon. thanks,
• What are some common "Fraud Indicators or signs"?
  • Warning signs of investment fraud:
    Beware of unexpected phone calls, letters, internet messages, even personal visits from anyone offering a quick-profit, low-risk opportunity that requires your immediate attention. When hounded on the phone by a promoter, don't be afraid to hang up without explanation. You do not owe the caller anything - in fact this kind of solicitation is an invasion of your privacy.
    
    High pressure sales tactics. Common examples of high pressure sales pitches include:
    "Act now, there is a waiting list of others who want to invest"
    "Hurry, or it will be too late"
    "Don't delay, this investment is as safe as a CD (certificate of deposit)"
    
    The promise of incredibly high profits. Look with doubt on promises that you can double your money or earn a high return on your investment within a short period of time.
    
    Be suspicious of an investment that is supposedly risk-free, low-risk or "secured" but promises high returns.
    
    Watch out for people who prey on your fears. It is common for swindlers to pitch their schemes as a way to eliminate your financial fears for the future. Fear and greed can cloud your good judgment.
    
    Be extra cautious of investments or products endorsed by groups. Many swindlers will attempt to obtain the endorsement of churches, fraternal and other organizations to lend credibility to their sales efforts. Just because an investment is endorsed by some group does not mean it is legitimate!
• Is there a special logo that Licensed securities representatives can show to signify they are licensed?
  • No there is not at this point. It is important that you check the references and any potential litigation against the individual before any investing takes place.The "Ask a Government Specialist" section of the Fraud College Community web site can help you.
• I am being told that my REITs are going to be de-valued soon and there is no way I can pull my funds out beforehand. How is that possible? The real money I put into them is going to be crushed and I can't stop it??!! I am extremely concerned about this. Is there anything I can do?? There MUST be!! Please advise. Thank you....
  • It is difficult to give you specific guidance on what may be happening to your REITs without additional details on the investment you made and the specifics of the "revaluing" that is about to occur. We would suggest that you call the Division of Securities at 801-530-6600 or fill out an online complaint form at the Division of Securities website (http://securities.utah.gov/investors/complaints.html) and provide the supporting documentation concerning your investment that will enable the Division of Securities to investigate this matter further.
• what are some questions I should ask when investing
  • There are many reference questions and guidance on the Investor.gov site. We urge you to review it before doing any investing.
• I sent $5000 in Postal Money Orders to long time "friends" (a married couple) as a deposit on very rare antiques that he was to purchase for me and later discuss delivery. I was told if the deal fell through for any reason within 10 days my money would be returned. I was then told that deal fell through but offered me a substitute that I agreed to. That fell through and after 8 weeks I requested a refund. I was stalled then my called were no longer taken. I called using other peoples telephones. The wife said she would pay out of her pocket if necessary but DO NOT talk to her husband as he is BI Polar and would get very upset. She said to call her the next day to discuss this further. She never took another call from me. With another persons telephone again, the husband took my call, he told me that if I did not stop harrassing them, I would find him at my door and would never bother anyone ever again. The Postal Service refused to help as it was under $5000, the FBI said the same thing. I called the local police to where they live and they refused to help and would not even hear my complaint of possible "violence". I had another person with knowledge of the law pretending to be my lawyer, and was told that would have no jobs to have wages taken from, do not own their house, would continuously delay showing up in court as he is mentally "disabled" and sees a doctor regularly and that lawyer costs to me would be prohibitive and was also aware that neither the Postal Service nor the FBI gets involved in these small cases.
  • Unfortunately, the $5,000 you paid for antiques would not be considered a securities transaction, which means the Utah Division of Securities would not be able to assist you in this matter.
    
    However, you can contact the Utah Division of Consumer Protection at (801) 530-6601. They may be able to help you or provide some advice on other resources for your particular situation.
• Is anyone going to post transcripts or podcasts of the conference online?
  • We will be posting highlights of the conference but not the entire day-long event. Stay tuned! thanks,
• We have lost $175,000.00 from Herb Kay who lives in Tuscon,Ariz. It has been five years with no return. Lawyers can't seem to stop him nor can the Attorney General in Tuscon. What is our next step?
  • The Utah Division of Securities ("Division") has reviewed the information provided, but would need additional information to determine whether the Division or another government body would be the appropriate one to handle your inquiry further.
    
    So the next step would be contacting the Division and asking to speak with an investigator about filing a complaint. The investigator will be able to discuss the details of your transaction/investment and provide more information. Please note: the Division does not provide investment or legal advice.
• where i complent about fraud college
  • Utah Investor, Please call me with your questions on Fraud College.
    
    Gary Bowen
    Securities Examiner
    801-530-6284