The Tennessee Department of Commerce & Insurance’s Securities Division this week encouraged state investors to proceed cautiously on new investment opportunities.
Fraudsters, TDCI officials said, continue to take advantage of the buzz surrounding companies promoting products and services related to the COVID-19 pandemic.
This, according to a press release that TDCI officials published on their website.
“With the world focused on the pandemic, scammers are preying upon unsuspecting investors by continuing to peddle supposed ‘miracle’ cures or purportedly innovative technologies,” TDCI officials said in the press release.
“No cures or vaccines for the coronavirus currently exist. Investors should be wary of schemes they see on the Internet and social media that claim to be raising money for companies promising new health care products that can detect, treat or cure the coronavirus. While some of these claims could be legitimate, many will ring hollow, leaving investors with nothing but broken promises and empty pockets.”
TDCI Assistant Commissioner Elizabeth Bowling said investors who have questions about either an investment opportunity or the salesperson should immediately contact TDCI’s Securities Division at (615) 741-5900.
“These pitches may include offers to invest in medical technology or healthcare companies by purchasing membership units in general or limited partnerships, stocks or ‘penny stocks,’ or through other investment vehicles, including private placement offerings, initial coin offerings or other cryptocurrency-related investors or crowdfunding,” according to the TDCI press release.
“State and provincial securities regulators recently launched an enforcement initiative to disrupt investment schemes related to the pandemic. Many of the schemes shared common characteristics.”
• They focus on fear and anxiety by promoting safe returns independent of the stock market and the economy.
• They exploit trendy assets such as cryptocurrencies or complex investment programs involving foreign currencies. While they may sound new or exciting, these types of products are also very unfamiliar to most inexperienced retail investors.
• They claim to give “passive income” or “cash flow” and promise to pay it on a monthly basis, which may appeal to unemployed retail investors or others negatively impacted by changes in the economy.
• The often misrepresent the risks associated with the investments or use professional-looking webpages to attempt to add legitimacy to the fraudulent offerings.
“Even when investment offerings are made in accordance with the law, many are highly speculative and subject to the forces of market demand and competition,” the TDCI press release said.
“Be wary of optimistic offers, especially when made during a crisis.”
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Chris Butler is an investigative journalist at The Tennessee Star. Follow Chris on Facebook. Email tips to [email protected].
Fraudsters….like Debra Birx who has no medical license in any state, let alone Tennessee. Or the fraudsters at the TN Department of Health that have no problem with that?
The biggest scam is coming straight from Mayor Chicken Coop’s office. I’m guessing no one is going to investigate him.