Yesterday, the Federal Trade Commission announced that it had filed complaints against several allegedly fraudulent investment schemes. It joined the Securities and Exchange Commission and 20 members of the North American Securities Administrators Association in announcing "Project Risky Business," a multi-agency crackdown on "investment opportunity" scams. One of the cases filed by the FTC, with substantial assistance from the New York Attorney General’s Office, was against World Interactive Gaming Corporation.
According to the FTC and the New York Attorney General’s Office, World Interactive Gaming telemarketed shares in an Internet gambling casino, Golden Chips Casino. The telemarketers allegedly told investors that its profits would mimic "Microsoft, Netscape and Yahoo" and gave "conservative estimates" of $100 million dollar profits in the first year. The sales pitch claimed that a consumer could make $150,000 off of a $10,000 investment.
"These ‘investment opportunities’ are peddled as bright new initiatives. But they’re actually the same old story," said Jodie Bernstein, Director of the FTC’s Bureau of Consumer Protection. "They are touted with fabulous earnings claims, promoted with deceptions and virtually all the investors end up losing their money."
Don’t be fooled by promises of a high yield and low risk investment. Before you invest, remember these simple points.
If anyone claims that a high-yield investment has no risk, don't believe it. There is one simple rule in investing -- the higher the possible profit the higher the risk.
Don't act hastily. Crooks often tell consumers that they need to invest now, but that's really just a way of trying to hide the facts about the scam. A solid investment will still be around tomorrow after you've had time to investigate it.
Always check out an investment thoroughly. Ask the regulatory agencies responsible for the industry if the investment is legal. The National Futures Association and the National Association of Securities Dealers are also valuable resources for would-be investors. Finally, check with your state securities regulators, as brokers and stocks often must be registered to do business in a state. For help in finding your state regulator visit the North American Securities Administrators Association.
Consult with the experts. Get an opinion from independent financial advisor. Even if an investment is legitimate, you also may learn about other investments better suited to your needs.
For more information about the case against World Interactive Gaming Corp., check out the FTC press release.
If you have questions or would like to report an incident, call NFIC/IFW at 1-800-876- 7060 or use our online forms.
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