| If you
have a question about an offering, check this website first. It
gives you several tools. The most useful is the "cases"
link on the menu that gives you a list of recent fraud filings against
various companies. http://securities.stanford.edu
You can make
a complaint to the Alaska securities division by using the form
found below. You can also make a complaint nationally to http://www.investingcomplaints.com/secreport.html
We advise Investors to read the
SEC's "Cyberspace" Alert before purchasing any investment
promoted on the Internet. The free publication, which alerts
investors to the telltale signs of online investment fraud,
is
available through the SEC's Home Page at www.sec.gov,
(click on the Investor Assistance and Complaints link, then News
Desk and then Top Tips for your readers). You can
also obtain this information by calling 800-SEC-0330. Investors
are
encouraged to report suspicious Internet offerings (or other
suspicious offerings) via e-mail to enforcement@sec/gov
(and also to us at the Alaska Securities Division (see E-mail
us on the Securities page). A user-friendly form to assist you
in making a report is available at the Enforcement Complaint
Center on the Enforcement Division link of the SEC Home Page www.sec.gov.
Investors can also mail a report to the SEC's Enforcement Complaint
Center, Mail Stop 0804, 450 Fifth Street, Washington, D.C. 20549.
WARNING! Don't
fall for international lottery schemes.Click
here for the story.
|
| WARNING! Never pay a large sum up front for a loan without
checking out the lender. Call us or your local Better Business Bureau.
There appears to be one such lender out of Canada named Capital Financial
Lenders, 866-278-8560 or 647-722-0871 or 718-928-3198. A man was
told his loan was approved but he was to wire $850 on an $8,000 loan
to Kevin Plumber, Toronto, Ontario, Canada. If you hear of anything
similar, let us know. |
WARNING! The
Associated Press reports: Financial Advisory Consultants, an Orange
County-based investment firm, claims to have generated extraordinary
profits for its clients over 20 years, but records indicate it
has
not
registered with state and federal agencies that regulate financial
advisers and investment funds. The company's annual reports to
clients
give no details on the companies it says it has bought and sold,
nor the
investments it says produced an average annual rate of return of
38.8
percent from its growth fund and 18.9 percent from its income fund
since
1983. . . . Regulators in California, Oregon, Washington and at the
federal Securities and Exchange Commission said they have no
incorporation, licensing or registration for Financial Advisory
Consultants or Lewis. "We're trying to figure out who they are," said
SEC spokeswoman Pauline Calande. North American Securities
Administrators Association spokesman Bob Webster said a lack of
registration is a warning sign to investors, as is the lack of detail
in
the firm's reports to its clients. "In investment, disclosure
is king," Webster added. "An investor has a
right to know what they're investing
in." |
| Senior
Citizens – click
here to explore for investment help |
| WARNING! An
article in The Gulf News, of Dubai, warns of prime bank schemes.
According to the article "If someone approaches you about
investing in a " prime bank" program, "prime World
Bank" financial instrument, or similar sounding high-yield
security, you should know that these investments do not exist.
They are all scams. . . . It is estimated that investors lost more
than $10 billion in the United States alone, to such bogus trading
programs. The scam artists' typical pitch, increasingly made over
the Internet, promises investors access to secret, high-yield investments
made through trades among the world's top or "prime" banks.
So many scams succeed that the Commercial Crime Bureau of the International
Chamber of Commerce calls them the "fraud of the century".
These investment instruments actually do not exist and the claim
that prime banks investments are guaranteed or secured by some
sort of collateral or insurance is false. In the U.S., state regulators
across the country have brought actions on behalf of more than
41,000 people who invested at least $470 million in prime bank
scams. Some victims failed to report losses for fear of looking
foolish. Full article: http://www.gulf-news.com/Articles/news.asp?ArticleID=94386 |
| WARNING! DO
NOT become involved in buying viatical settlements, until
advised here that there have been registrations of products and
salespersons. Currently, there are NO products or salespeople
registered and this is an absolute requirement of the Alaska Securities
Act. For information, or if you have questions, call 907-465-2521
or
e-mail us at dbsc@commerce.state.ak.us |
| WARNING! Be
careful of solicitations from Children’s
Global Village or any other entity with the name “Children’s” in
it, coming from a Thomas Lee K. Christianson a/k/a Carney Kinnamon.
A cease and desist order was issued in Virginia and fines totaling
more than $240,000 were levied for violations of securities law.
If you hear of any of these so-called charities, please contact the
Division at (907) 465-2521 or e-mail dbsc@commerce.state.ak.us |
| Future
First Financial Group President Arrested> |
| WARNING! The
United States Department of Justice advises the public not to respond
to e-mail solicitation (or similar letter or fax solicitations) that
purport to come from individuals living or working in Africa, or to
send or give money or their financial account information to anyone
who contacts them in connection with such solicitations. Read
special report. |
| WARNING! Investors
in viatical settlements sold by Future First Financial Group
are being asked to send money to pay premiums. The amount set aside
by Future First has apparently run out and the Service Corporation
is alleging that the policies may lapse if the escrow account is not
replenished. The division urges investors to seek the assistance of
an attorney quickly to determine their rights and responsibilities.
Time is a factor. (See the notice posted below concerning Future First
Financial.) |
| NOTICE Investers in viatical
settlements sold by Future First Financial Group are being
asked to send money to pay premiums. The amount set aside by Future
First has apparently run out and the Service Corporation is alleging
that the policies may lapse if the escrow account is not replenished.
(Copy of notice) The division urges
investors to seek the assistance of an attorney quickly to determine
their rights and responsibilities. Time is a factor. Future
First Financial Group President Arrested |
| WARNING! The Alaska Division of Banking,
Securities & Corporations recently ordered Coastal Resources
Corporation of California to cease and desist from selling unregistered
securities. To date they have not responded and the division has fined
them a total of $140,000. Coastal Resources, and its officers Richard
O'Connor and Rose Conant, claims to deal in oil leases
and touts a rosy future; there does not appear to be anything to back
this up. The division learned of their operations when an Anchorage
investor complained he was bilked out of $65,000 for worthless stock
in the company. If you have any contact with these people, contact
the division. |
The
U.S. Commodity Futures Trading Commission (CFTC) has received allegations
that an unregistered firm, North American Trading Advisors,
operating out of Costa Rica may be involved in flagrant fraud. We
understand that the firm is soliciting purchases of options (and
possibly futures) that appear to be traded on commodity exchanges,
but might actually be misappropriating all the funds invested. Many
of the solicitations are of Canadians, including
some living in the U.S. We would be very interested in receiving information
about any
complaints made by members of the public about this firm, or any other
information you might have about them, or the other names listed below.
Please contact Beth Streit
at (312) 596-0537, or e-mail her at estreit@cftc.gov, if you have
any information about the
following:
North American
Trading Advisors
Glenn Picheco
Allan Jimenez
John Northcott
|
| Commodities
Futures Warning |
| Here
is a web site that provides comprehensive information on frauds and
scams. Please visit the site if you wish to know more about how bad
guys operate. http://www.crimes-of-persuasion.com/
|
| PUBLIC
AWARENESS ADVISORY REGARDING "4-1-9" OR "ADVANCE FEE FRAUD" SCHEMES
(United States Secret Service) |
| WARNING!
The advance fee loan scam artists are becoming more sophisticated.
We have a report of "identity theft" of a legitimate business from
Michigan. The stolen identity is being used by frauds in Toronto to
bilk funds from businessmen. Statewide Financial, a legitimate Michigan
concern, reports that his company's name etc is being used in several
states as a front for a scam. The apparent frauds use the holding
company name Lafayette Lending Group and explain to prospective borrowers
who answer their newspaper ad that their subsidiary -- Statewide Financial
-- handles the brokering of loans; if the customer does due diligence,
all seems in order. The customer is later advised that the loan is
approved pending receipt of a 1% fee that should go via Western Union
to the investor in Toronto. Of course, there is no loan. Victims have
been reported in MO, VA, IN and WA. |
|
WARNING!
The Office
of the Comptroller of the Currency (the office that oversees
national banks) warns of an increasing volume of bogus investment
proposals being promoted towards banks and municipalities to leverage
investment portfolios through some type of secondary market activity.
The programs purport to generate high yields - up to 10% or more
per month - at no risk to the original investment because they are
alleged to be under management or the personal supervision of the
Federal Reserve Bank and the chairman of its board. These programs
have no financial validity and could place the participant at extreme
risk of finances and reputation.
These programs
may utilize deposit, trust, or safekeeping accounts at major financial
institutions. Although they purport to remain under the investor's
control at all times, control is not assured because of ambiguous
working, program changes, or other seemingly insignificant events
that provide opportunities for access by other than the investor's
authorized employees. These programs are fictitious and we and the
Comptroller suggest you exercise caution by demanding verifiable
facts and references before being drawn into any investment program.
Further information is available through the Comptroller's office
at (202) 874-5301 or http//www.occ.treas.gov E-mail to alertresponses@occ.treas.gov
|
|
WARNING!
The Nigerian
scam is back, this time the thieves are selling the Nigerian Youth
Football (Soccer) Conference - or some such ruse - as the organization
they stole from to get the money you are being asked to help launder.
In its first incarnation, the scamsters "over-invoiced" government
sources, then asked you to help by giving your bank account number
so they can park the huge sum while the trail cooks down. For this,
they proposed to give you 25% or more - usually an amount that would
cross your eyes. Those with a slight criminal bent or whose greed
made them impervious to any twinges of conscience would bite and
get stung in return.
For more on
the story from the U.S. Secret Service click http://www.treas.gov/usss/
|
| WARNING! Tokyo
Joe’s Societe Anonyme is engaged in litigation with the Securities
& Exchange Commission. The SEC is alleging Yun So Oh Park, using
the moniker Tokyo Joe, is nothing more than an elaborate pump-‘n-dump
scheme that purports to give market information, but uses its network
to tout certain stocks as good investments while Mr. Park is likely
selling the same stock. So far, Park has not been put out of business
because this is a new area for the SEC and will require the litigation
to run its course before Tokyo Joe gets his. (Why would anyone listen
to someone calling himself Tokyo Joe in the first place???) |
| WARNING! There's
a pernicious phone scam making its way around the Web, and this time
it's real, according to the Urban Legends Reference Pages. You receive
an urgent message asking you to call a phone number with area code
809 (sometimes it's a different number). Many callers assume it's
in the US, but it's another country -- actually the Dominican Republic,
not the British Virgin Islands as stated in the email. It's a pay-by-minute
number similar to 900 numbers in the US, but with much, much higher
tolls. Many callers get a literally endless wait, and charges pile
up while they're kept waiting. In this case, we think it's good advice
to not open unknown email attachments ever -- don't call any unfamiliar
or suspicious long-distance numbers. |
| WARNING!
Be wary of foreign currency trading schemes
that turn up in your life unannounced. Promising huge profits, the
only gains go into their pockets. Not all traders, but those that
"cold call" their victims should signal caution. Some unscrupulous
traders erroneously think that this type of trading doesn't come under
either the jurisdiction of the CFTC or state securities regulators
so have set up shops promoting foreign currency transactions as a
means to make big bucks. Firm names include Salmon Chase International,
Inc., Gibson Reed, First Forex Holding Corporation. We know of
oone Canadian man who lost $5,000 to Salmon Chase. Be careful with
your money and call us if you are approached (907) 465-2521 or e-mail
us at dbsc@commerce.state.ak.us |
| WARNING! There
a scam going around that offers loans if you pay a fee in advance.
An operation calling itself "State+Union" has advertised loans available
along with an 800 telephone number. Callers have credit Information
taken down then get a callback with the news that the loan has been
approved and the money will be forwarded as soon as the fee is received,
in this case via wire. The victim sends the fee and, of course, there
is no loan. If you run across any such schemes>,
please contact this office at (907) 465-2521 or E-mail at dbsc@commerce.state.ak.us.
|
|
CALLABLE CERTIFICATES
OF DEPOSIT
One of the latest
consumer headaches centers on "callable CDs." And they are being
sold by apparently big brokerage firms. They lure buyers in by offering
higher-than-normal rates of return. The CDs often fluctuate in value
and often carry extra-long maturities of as much as 30 years. They
are especially burdensome on the elderly, who probably won’t
outlive the CD. One broker sold a 97-year old woman a 20-year callable
CD. And the call feature is only exercisable by the seller, not
the buyer.
The New York Stock
Exchange fired the first salvo and fined Edward Jones & Co.,
a large St. Louis based brokerage, $200,000 for selling what turned
out to be unsuitable investments for many of the company’s
clients. There is a fight brewing, as brokers assert they are not
securities and Securities and Exchange Commission lawyers say they
are indeed securities that need to be registered.
For
more information, click here for the rest of the story.
|
|
NOTICE.
Caruba
International, after being called on the carpet by Alaska Securities,
promised to reorient their marketing so that it does not resemble
a pyramid scheme. We believe their retention of an honest, knowledgeable
attorney points to their intention of not cheating their investors,
but as with any investment, you must be careful and check into the
investment thoroughly before putting your money down.
|
| WARNING! The
Financial Information Network may be running an advance fee scam out
of Boca Raton, Florida. Anyone receiving inquiries or complaints regarding
this firm should contact Detective Rob Flechaus, Boca Raton Police
Department, at 561-338-1325 and Alaska Securities at (907) 465-2521
or by e-mailing us at dbsc@commerce.state.ak.us |
| WARNING! The
latest scam appears to be getting you to invest to set up shop processing
medical claims. They will – for a fee! – get you started
in this money-making business. The catch – most doctors already
have someone who processes their claims, usually in house, and aren’t
likely to switch for no good reason. Don’t throw your money away
in hopes of getting a business going. As usual, if it’s worth
anything at all, it takes hard work to get started. |
| WARNING! There’s
an attractive web site called LIFE-CLUB.COM
which should be avoided. It is an obvious scam coming over the internet
from England. It seeks investors in units of $1,000 and has a pyramid
scheme as a "bonus!" The operators are unregistered so it
is definitely an illegal investment offering. Stay clear of these
people. |
| WARNING! There
have been rumors of promissory note scams being offered in Fairbanks
much like the World Plus affair. One note was actually intercepted.
It offered a $20,000 loan to receive 20% per quarter interest. That’s
very attractive but doomed to fail. Don’t be lured into these
promissory note swindle. Be wary of a Ken Forster who is alleged to
be behind these scams. |
| WARNING! Complaints
have generally come from overseas, but there’s no telling when
these people might begin tapping the local market. They advertise
that they will manage stock sales for the client for a 10% advance
fee. Look out for offers from Delta Atlantic Management, Inc.
The address they give is a US West telephone switching office and
the Zip code they use does not exist. The telephone numbers they give
out are forwarded to Georgia. The names involved are: Austin Delaney,
Patrick Rice, Rebecca Goldstein, Robert James Sutherland, Jonathan
Morgan, Dennis Allen, Colin Sheppard, and Frank Warlock. Give them
a wide berth. |
| WARNING! A
task force of state and local agencies has been formed in Oregon to
investigate an unlawful pyramid scheme active in Oregon and Washington
known as the "Women's Empowerment Network" or the
"Original Dinner Party." This scheme allegedly originated
in Toronto, Canada and has spread into the United States. The scheme
was very active in the Seattle area before moving on. Based upon available
intelligence, we suspect that the scheme quickly leap-frogged around
OR and WA (and possibly other states) via participants who are employed
by United Airlines. The scheme promises a $40,000 payoff on a $5,000
cash investment and is drawing in numbers of people. |
| WARNING! We’ve
heard about two new entities in the investment market. Don’t
know if they are legit or not, but be careful; the information we
have leads to the belief they may be scams.
New Vision - this entity pools
investor funds to purchase bad debt. The> company
allegedly employs lawyers to collect this debt. They say they offer>
a 15-18% return and
pay up to 12% in commissions to salespersons. That’s all we
know. If you hear about them, let us know.
Personal Choice - this entity
is offering and selling blocks of discount memberships (i.e., hotel
discounts) in increments of $5,000, $10,000, and $20,000. It appears
to have a multi-level component whereby investors bring in other
persons and get profits from them.
|
| WARNING! Le
Club Privé appears to be a huge ponzi scheme (Click
here to find out more about Ponzi schemes). The operator of the
scheme, known as "Bull Dozer" claims to offer many ways
of building wealth, most through supposed secret offshore trading
programs. The money actually comes from the victims. Of course, you
must be a member to participate - membership starts at $1,495, plus
a monthly fee, and you forfeit your position on the pyramid if you
fail to recruit other members or don't send in your> monthly
obligation. Bull Dozer claims an address in the Netherlands, but the
contact phone number is in Oregon. If you know anything about Le
Club Privé, please let us know. |
WARNING! John
Runnberg of the Kansas Securities Division, has come across two individuals
that are operating an investment advisory type entity known as Active
Capital Management, L.L.C., from Cape Girardeau, Missouri.
They have a very well designed and professional looking web site
that touts
the entities' three investments:
- a managed account where the
investor opens an account at E*Trade or other on line broker and
gives ACM trading authority over the account. ACM only receives
a 20% commission on your profit.
- a home equity program, where
the investor obtains a home equity loan and places the proceeds
in an account for ACM to trade.
- a certificate of deposit program
backed by ACM.
The individuals are Radoslav Ratkovsky
and Peter Staykov. A potential investor was told the present entity
has been operating since April of 2000, however the web site lists
historical returns for the past several years. One of the principals
said he had been doing the same type of investment advisory services
in Los Angeles, CA, under a different name, but did not give the
name of the entity. Investors were also told that a partner in LA
was also involved with ACM.
|
| Take Note:
JILAK Group, Ltd. (JILAK supposedly stands for Jesus Is Lord
and King.) They have been advertising some type of offshore investment
that yields 40-50% weekly. They are targeting churches. James Rumpf
(may be from the Dallas, TX area) is the individual behind these offerings.
We don’t know if this a good or bad investment, only that 40-50%
weekly sounds a little suspect. If you hear anything,
please contact this office at (907) 465-2521 or E-mail at dbsc@commerce.state.ak.us.
|
| WARNING! Be
extra careful of any approach by Mutual Benefits - a viatical
interests sales company - they may be selling fraudulently obtained
policies. The company has not registered with us as required, but
that doesn't mean they wouldn't try to sell. So far we only have one
case of Mutual Benefits selling in Alaska and that has been satisfactorily
concluded.> |
| WARNING! If
you are, or have been, pitched by PATRICK FERRIS and a company
named VIATECH, Inc., please let us know. Several states have brought
actions against Mr. Ferris for fraud. His last known whereabouts is
Washington state, and that means he could be looking to work on Alaskans.
Be very wary of any pitch man, but if this one approaches you in any
way, give us a call at (907) 465-2521 or E-mail at dbsc@commerce.state.ak.us.
|
| WARNING!
We have word from Florida that a firm called The
Summit Group, Inc. may be offering prime bank instruments disguised
as a bank debenture trading program. We would appreciate hearing from
anyone that may have information on this firm. Don’t become a
victim either, check with us if you hear about Summit. E-mail at dbsc@commerce.state.ak.us.
Telephone at (907) 465-2521. |
| WARNING!
We have word from Montana of a pyramid scheme coming
around. It goes by several names, the one aimed at a Montana woman
recently was The Given In Freedom Trust or G.I.F.T. (You know
who the giver is!) The premise of the scheme involves a classic pyramid
recruiting structure (you go recruit three people, they go recruit
three people, etc...) with monies being deposited in an off-shore
account in the West Indies (Given In Freedom Trust, William A. Hull
Business Center, Suite 201, Main Street, Charlestown, Nevis, West
Indies.) The fax number listed is (869) 469-0996. |
| NOTICE.
Micro-Budget Video Features is a California
partnership formed for> the
purpose of producing films. We believe four different "private
placement" offerings have occurred to date, the first beginning
back in 1994. The initial general partner involved is identified as
Donald G. Jackson. If you or anyone you know has been approached to
invest in this organization, please contact this office. E-mail at
dbsc@commerce.state.ak.us.
Telephone at (907) 465-2521. |
| WARNING!
Alpha Tel-Com and ETS Payphones, Inc.
are involved in the sale and leaseback of telephones, that they tout
as investments. You buy a payphone, they operate it, and you get paid
a rental fee. There are various different options ranging from the
purchaser of the phone doing their own installing and managing of
the phone to purchasing the phone and leasing it back to the company
where they handle the managing, servicing, and all the details and
send a periodic check. Alpha Tel-Com is headquartered in Grants Pass,
Oregon and ETS Payphones, Inc. is based in Georgia. Both companies
are under investigation in other states and while we don’t say
there is necessarily any wrongdoing, before investing you should strongly
consider whether the investment is suitable for you or not.
|
| WARNING!
We have reports of meetings where investors are being
pitched on High-Tech Travel Services Corporation, a Delaware
corporation with a New Jersey address - 38 2nd Street, Atlantic Highlands,
NJ. We understand the corporation is selling shares, and reportedly
is claiming they are exempt under Rule 505 Reg D, however, no fillings
have been found with any state so far. Use caution and remember,
if it sounds too good to be true, it usually is -- not true.
|
| WARNING! Anyone being contacted by or doing
any sort of business with an organization using the names Rishon
Bank & Trust Corporation or First Nations Bank of Alaska,
Kuiu Thlingit Nation, Ketchikan, Alaska is asked to contact
us immediately. First Nation’s Bank purports to be licensed by
the Kuiu Thlingit Nation of Kuye'di of Kuiu Island. Banks are supposedly
licensed and regulated by the Ministry of Finance. DO NOT GIVE
THEM ANY MONEY. An investigation is being launched by this office
and we would appreciate whatever help you can give. |
| WARNING!
Future First Financial Group, a viatical settlement
company, was recently the target of an Alaska Securities Cease &
Desist Order. Now comes word from Florida the company has been indicted
criminally for fraud and grand theft. For
press release, click here. |
|
