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News Release: 01-16
GRAY DAVIS, Governor
Date: 09/27/01
DEMETRIOS A. BOUTRIS, Commissioner
Scam Artists May Capitalize on Investor's Fears Following Terrorist Attacks
** INVESTOR ALERT **
Sacramento, September 27, 2001 — California Corporations Commissioner Demetrios A. Boutris today advised Californians to be wary of fraudulent "investment opportunities" that are likely to crop up in the aftermath of the terrorist attacks in New York City and Washington, D.C.
"Sadly, some scam artists are willing to exploit this terrible tragedy with false 'investment opportunities.' They may lure consumers to allegedly 'safe investments,' which in fact offer little or no security for the money transferred," Commissioner Boutris said. "Now, more than ever, investors should resist the temptation to make hasty decisions about investments or finances."
Cold-calling telephone salespeople, pressure tactics to make decisions quickly, advertisements or Internet postings that tout commodities, exotic financial products or supposed anti-terrorist technologies should be a red flag for investors. Californians should be especially skeptical of enticements to send their money offshore to so-called "safe havens."
The California Department of Corporations reminds investors to carefully examine financial products and the companies behind them whenever they plan to invest, whether in good economic times or in times of uncertainty. Californians can investigate potential investment brokers and advisers to make sure that they're licensed and don't have a history of violating the law by accessing the Department of Corporations' Web site at www.corp.ca.gov.
The Department of Corporations is California's Investment and Financing Authority, reporting to the Business, Transportation and Housing Agency and the Governor. The Department is responsible for the regulation, enforcement and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending and residential mortgage lending. For further information or to obtain a complaint form, see the Department's Web site at www.corp.ca.gov.
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