Ohio investors warned to be smart, not fearful

Aug 23, 2011

The volatile stock market and the recession have brought lots of new customers to a business that didn’t need any. Ohio Public Radio’s Karen Kasler has details.

The reports of people being targeted by financial scammers has been growing, says state commerce director David Goodman.

“It’s not just people who are out there trying to get rich quick right now. It’s people who are trying to find a safe haven to put their money in a safe place,” says Goodman.

Goodman says investors need to check out anyone trying to sell them financial products, and says they shouldn’t bow to pressure to buy now and shouldn’t believe promises such as no risk and guaranteed profit. The top scams the state is following are ponzi or pyramid schemes, which use money from new investors to reward older ones till the setup collapses. The second most common scams are unlicensed and unregistered sales of stocks, bonds and mutual funds, followed by frauds by investors who build on trust in families, in places of worship or other relationships.