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State Warns Against Risky Investments
The volatility in the stock market is tempting some investors to try putting their money somewhere else, and they may not fully understand the risk.

Vickie Moseley, assistant director for investor education and protection with the Illinois Secretary of State's office, says risky instruments such as promissory notes are being peddled as less-risky investments than the stock market, when in fact they are often more risky and investors aren’t being properly advised of the risk. Also, some investments are a fraud. They're either a Ponzi scheme, in which there is no underlying value, but new investors are recruited to pay off previous investors, or the promissory notes are for companies that do not exist.

Moseley says these investments or scams are often offered to so-called affinity groups, such as groups of immigrants, veterans, or church members who know and trust the salesman. Individuals who offer securities for sale in Illinois must be licensed by the state, and the secretary of state’s office maintains the license records, which the public may inspect.

Moseley urges anyone with complaints to CLICK HERE. She says investigators and prosecutors want to know about fraud, but the mere fact that an investment didn’t work out doesn’t mean it was a scam.
10 14 08 by Newsroom
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