Investment Fraud

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Investment Fraud
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Current Events

• Rates of Return
• Savings Accounts
• CDs
• Money Market Accounts

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Why Does This Matter?

• Comparing and Contrasting Investment
  Opportunities
• Making Informed Investment Decisions
• Finding the Best Investment for You

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Investment Myths

• High Reward with No Risk
• Scams Dont Happen to Smart People
• .com Companies are a Sure Bet
• This Investment is Guaranteed/Insured
• No Written Information is Available
• No Securities License or Registration is
  Necessary to Sell This

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Other Comments and Phrases That Should Raise a
Red Flag

• This Offer is Only Good Today/This Is a
  Limited-Time Opportunity
• Just Give Me Your Credit Card and Checking
  Account Number
• This is Only Available to a Select Group
• I Get Nothing Out of This Deal

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Red Flags (continued)

• Do Not Tell Anyone -- Not Even Family
• I Will Come to You, You Dont Have to Come to Me
• Foreign Banks Pay Great Interest Rates and No
  Taxes
• This is Insider Information

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Common Types of Fraud

• Pyramid Schemes

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Common Types of Fraud

• Ponzi Schemes
• Phony International Investments
• Affinity Fraud
• Bogus Franchises and Corporations

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Do Not Let Them Take Advantage of You!

• Hang up the phone
• Ask Questions!
• Remember, they are in this for themselves -- not
  to help you out
• Contact the Secretary of States Office for
  information regarding the opportunity and the
  person offering it

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Secretary of State Todd RokitaWe Are Here to
Help You!

• Fraud Hotline [phone]
• Website www.sos.IN.gov
• Location 302 W. Washington Street Room E-111
  Indianapolis 46204

• Report Investment Fraud
• Check On
• Securities
• Franchises
• Loan Brokers
• Exempt Filings
• Broker Dealers
• Investment Advisors
• Enforcement Actions