HARTFORD, Conn. -- If someone calls you promising investment deals with low risk and a high rate of return, check with the state before signing up, Gov. M. Jodi Rell warned Monday.
Rell said residents promised such deals should call state regulators to verify the validity of the offers.
“Consumers need to be on guard against these hard-sell investment scams that are, unfortunately, all too common in times of economic uncertainty,” Rell said. “Unscrupulous individuals prey on financial fears of senior citizens and others who may see these bogus ‘get-rich quick’ offers as a way to recoup money lost in the volatile stock market.”
The state Banking Department runs a hot line at 800-831-7225 and the state Insurance Department runs a hot line at 800-203-3447. Both are free and have staff available to answer questions and field complaints:
“These high-pressure pitches often come with no-risk promises and involve non-traditional investment opportunities such as oil, gas, gold and even foreign currency,” Rell said. “Legitimate financial advisors would not recommend drastic investment changes based on sudden market news. Investors risk losing even more when they can least afford to as a result of these frauds.”
Before making an investment, Connecticut residents should determine whether the salesperson is licensed to sell stocks or policies in Connecticut, the state has taken any enforcement action against them and the investment is properly registered with the state.
Consumers have the right to request a written explanation of the investment from the seller before making any decisions, Rell said.
Department of Banking
Department of Insurance
