The Ohio Division of Securities issued an alert recently reminding individuals to be wary of investment pitches that link sales to a volatile stock market. With the stock market as unpredictable as it is, it can be easy to want security for your investments. However, scam artists prey on this vulnerability and use the market downturn to sell illegitimate investments. At Meyer Wilson, we often receive calls from individual investors who have lost substantial portions of their life savings in these types of scams.
In its alert, the Ohio Division of Securities advises people to avoid investments that guarantee immediate or high returns and claim to offer no risk. By nature, investments are unpredictable, thus making it impossible to promise exact returns or profit. Investors nearing retirement are urged to take particular caution since they are more likely the targets of investment schemes.
The Ohio Division of Securities also urges investors to be wary of aggressive sales for unregistered securities and non-traditional investments. Foreign currency, investments in oil or gas, and sending funds offshore to “safe havens” are all considered non-traditional investments.
Ohio Securities Commissioner Andrea Seidt also recommends investors ignore persistent calls and emails that are unsolicited, especially if you do not know the person pitching these sales. Be especially cautious if these sales people recommend liquidating solid assets or making changes to portfolios for a short-term economic change. Also, the Division suggests that investors never switch to sales that are high in commission or fees, with unwarranted risks.
When investing in any form of securities in the state of Ohio, here are some things to consider:
- Does the firm or salesperson have the appropriate license to sell securities in Ohio?
- Check their background for any actions taken against them.
- Did the firm or salesperson properly register with the Division of Securities?
Before investing in any funds or securities, make sure to ask the salesperson for writing information about their pitch. You want to be able to review it closely and note any inconsistencies or discrepancies.
If you believe you have been a victim of investment fraud, call Meyer Wilson today. We can help review your case and inform you of your legal rights.