• 11
  • January
    2012

At a time when Arizona seniors are most concerned about their retirement, they are especially susceptible to securities investment scams. Con-artists prey on seniors concerns over their retirement nest-egg by promising a quick-buck. Some senior citizens in Arizona have lost their entire life savings to such scams - which can lead to creditor harassment when they are unable to pay future bills. This is not the way many seniors expected to spend their supposed "twilight-years."

Arizona Securities Scams

This scam generally involves someone professionally dressed convincing an Arizona senior to invest in a business venture, note, stock or other "secret" investment in which only certain people are allowed to invest - with guarantees of huge returns. Often times, the fraudster keeps a big part of the investment as a "commission" and the promised returns never materialize. Moreover, these "brokers" are usually not even licensed to sell securities in the first place.

The Arizona Attorney General has enumerated some tips to avoid being caught up in these scams. They include:

  • Check with the Arizona Corporation Commission Securities Division to see if the broker is even registered to sell securities in Arizona or if the broker has a disciplinary history (www.azinvestor.gov)
  • Check with the Securities and Exchange Commission to find out if the company is registered to sell securities (www.sec.gov)
  • Obtain an independent appraisal of the specific business or venture
  • Never give absolute control of your money to anyone or allow them to make investment decisions for you
  • Do your research and decide what investments are appropriate for you, and if you need additional assistance, only use brokers or financial advisers with proven histories
  • Never invest in an opportunity that you are unfamiliar with
  • Never invest in an opportunity brought to you by someone other than a registered professional, such as a broker or financial adviser


Source: Smart Seniors...Avoid Scams and Fraud