Top Investors Threats Announced By NASAA

Stockbroker Law - Tuesday, May 10, 2016
Top Investors Threats Announced By NASAA

The North American Securities Administrators Association (NASAA) recently announced its annual list of top investor threats after a survey of state securities regulators, identifying the five most problematic investment products, schemes and tricks as follows:

  1. Unregistered Products/Unlicensed Salesmen - unregistered salesman without any training or licensure has flooded the internet, airwaves and telecommunications system bombarding unsuspecting investors with slick come-ons. If your salesman is not licensed with FINRA or registered with the SEC (link), that’s your first sign of trouble.
  2. Promissory Notes – peddlers of these oftentimes high-interest promissory notes target seniors and other individuals living on a fixed income. While promoters of bogus promissory notes skirt the securities and registration regulations associated with the sale of promissory note products, there have been prominent tool fraudsters in the past several years.
  3. Oil/Gas Investments – drilling projects including partnership and limited partnership proposals, oftentimes accompanied by color photographs of drilling sites, drilling maps, exuberant graphics and unattainable projections of anticipated oil production and income. Bogus wells and drilling projects, as well as frequent dry holes make these projects a sure bet for promoters while leaving investors high and dry.
  4. Real Estate-Related Investments – this category includes non-traded real estate investment trusts (REIT’s), time share, resales and brokered mortgage notes.
  5. Ponzi Schemes – the early investors are paid with monies raised from later investors, with the promoters being the only ones who make money in these bogus schemes.


We offer a free initial consultation to investors who feel they have been victimized in any of these prominent victimization schemes. For a free initial consultation contact the Law Offices of Timothy J. O'Connor at (518) 426-7700.

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