Sales of stocks in microcap or thinly capitalized companies to unsuitable investors. The sale of these securities often involves market manipulation. Highly speculative investments in foreign currencies are often peddled through aggressive telemarketing and advertising campaigns. In reality, the products are not legitimate commercial paper. In many instances, the firms offering these notes are highly speculative start-up operations or entirely bogus enterprises.
Salespersons often misrepresent the returns to potential investors.
Never be pressured into acting on an investment decision. Invest only in what you fully understand. Seek legal counsel to help understand confusing language in a contract or prospectus. Investigate any potential investment by calling the hotline to fee if the securities being offered are registered. In addition to the hotline, DBF and the Attorney General's Office have also created a new web site to help educate the public about financial fraud.