Investors beware
New Mexico investors need to be on guard against con artists, says the Director of the New Mexico Regulation and Licensing Department Securities Division.
Citing soaring energy costs, falling real estate prices and a stock market in turmoil, Bruce Kohl joined national watchdog groups today in warning the public that conditions are ripe for investment scams, particularly those masquerading as oil and gas partnerships, alternative energy projects, and real estate investments.
“Criminals often follow the headlines in an effort to lend their schemes a cloak of legitimacy,” Kohl said in a press release.
Kohl said rising gasoline prices may spur investment in oil and gas projects, or alternative energy projects like wind farms or solar power companies. Plus, with the home mortgage market in an upheaval, there are an increasing number of real estate schemes that promise large returns.
And, investors should be wary of “hot energy-related tips, speculative real estate promotions, unsolicited invitations from new online “friends,” and complex, opaque investment products that fail to offer clear disclosures of their risks and costs.”
Teala Kail, spokesperson for the N.M. Securities Division, told the Independent that her office has a few ongoing cases at the moment, but that it's too soon to tell if there's a widespread problem within the state. Nonetheless, she said, investment scams often take a year or two to come to light, and there are an increasing number of these types of scams nationwide. "For this reason, it's important to be pro-active instead of waiting until we have a rash of cases coming to light in New Mexico," Kail said.
People should be wary of hard-sell approaches, and do their homework before handing over their cash.
Kail suggests that anyone looking to invest in these types of offerings should investigate them through the N.M. Securities Division first, by calling toll-free at 1-800-704-5533, or through their website. Any legitimate investment opportunities in the state would have to be licensed by the securities division.
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