Officials Warn of Katrina Investment Scam
An AP newswire article, via SFGate.com, reports that:
Federal and state regulators Thursday warned investors to beware of "opportunistic investment scams" in the wake of Hurricane Katrina.
The North American Securities Administrators Association, which represents state securities regulators, urged investors to be on guard against investments that promise profits from hurricane relief and recovery efforts in Louisiana, Mississippi, Alabama and Florida.
Oil-and-gas deals and investments in water-purification technology and energy-generating devices also should raise red flags, NASAA President Franklin Widmann said.
Widmann, who is chief of the New Jersey Bureau of Securities, told investors to beware of cold calls, advertisements and Internet postings that tout potential gains from hurricane clean-up.