“These are difficult economic times and Ohioans need to be alert to the warning signs of get-rich quick schemes and investment fraud,” said Ohio Securities Commissioner Andrea Seidt. “While it may be tempting to try and quickly make up for any investment losses incurred in 2008, I encourage investors to be on guard against investment scams that promise unrealistic returns with little or no risk.”

To avoid becoming a victim of investment fraud, the Division of Securities encourages Ohioans to:

• Be skeptical when promised unusually high or unrealistic returns – especially when other investments are not performing as well.
• Be leery of family and friends singing the praises of a particular securities salesperson or investment.
• Take the time to understand the investment. Do not be pressured to make a decision on whether to invest.
• Always stay in charge of your money.
• Keep detailed notes on conversations relating to your investment accounts.
• Carefully review your mailed account statements against your online account.

“If you have recently lost your job through a mass layoff that received media attention, you should be particularly skeptical when receiving unsolicited offers that promise the investment of a lifetime,” Commissioner Seidt said. “Unfortunately, there are individuals who prey upon the fears of dislocated workers in hopes of gaining control of their 401(k) funds or their severance package.”

Beyond being aware of the potential for investment fraud, Ohioans should consider developing a financial plan for the New Year. In developing a financial plan, Commissioner Seidt recommends the following:

• Define the purpose for saving and investing.
• Set short-term and long-term financial goals.
• Establish a comfortable level of risk tolerance that fits your personality and investment goals.
• Consider which saving and investing products best match your goals and risk tolerance (including employer-sponsored plans.)
• Stay disciplined.

When considering whether to hire an investment adviser (company) or investment adviser representative (employee) to assist in developing a financial plan, Ohioans should first call the Division’s toll-free Investor Protection Hotline at 1-800-788-1194. They should ask if the investment advisers or investment adviser representatives are licensed and if there have been any enforcement actions taken against them.

To assist investors, the Division of Securities has a variety of investor education publications available at www.com.ohio.gov/secu or by calling the Investor Protection Hotline.