I-Team: Investment Scams on the Rise - 8 News NOW

I-Team: Investment Scams on the Rise

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LAS VEGAS -- 2011 was the worst year for investment scams in Nevada, according to the Nevada's secretary of state.

Secretary of State Ross Miller said fewer investigators and more desperation made 2011 a great time for fraudsters and caused some Nevadans to lose their last dollars in shady schemes.

Fraudsters often target seniors and minorities with pyramid schemes passing as legitimate investments. Their usual promises of 150 percent profit within months are too good to be true, said Miller. His office is also seeing a rise in scams focusing on lower priced penny stocks.

"Unfortunately, people get rushed into these schemes because they don't want to lose out on the opportunity and they sign over the check and the con artist takes the money and they're gone."

Budget cutbacks reduced the number of state securities investigators by one-third which makes it more difficult to shut down criminal investment schemes.

Ross is urging Nevadans to look up an investment group's license on the state's website. You can also contact state securities regulators at (702)486-2440.

 

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