FOR IMMEDIATE RELEASE
Thursday, August 08, 2013
Contact: Kevin Flannery, (573) 526-0949
Kander Alerts Investors of Potential Virtual Currency Scams
Jefferson City, Mo. — Secretary of State Jason Kander today issued an Investor Alert concerning potential fraud involving virtual currency. Virtual currency is sometimes used in place of traditional currencies to buy goods and services online.
"Missourians should be cautious if approached with investment opportunities regarding virtual currency," Kander said. "Investment offers involving virtual currency should be subjected to thorough scrutiny, including an understanding of how the investment makes money and a call to my office to check the registration of the person pitching the investment."
The Investor Alert follows allegations by the Securities and Exchange Commission (SEC) that a Texas man falsely promised investors as much as 7 percent interest per week on trades using Bitcoin, a virtual currency. The SEC alleges that Trendon T. Shavers defrauded investors from various states of more than $4.5 million through this scheme. The SEC further alleges that, in a frequent refrain of scammers, investors were promised high yields with little or no risk. Bitcoin was not accused of any wrongdoing.
"All investments carry some degree of risk," Kander said. "Don’t let the guise of ‘virtual currency’ or the supposed guarantee of high returns lead you into a Ponzi scheme. I encourage any Missourian who invested with Trendon Shavers to contact my office as soon as possible at 1-800-721-7996."
In Missouri, almost every person offering or selling securities must be registered with the Missouri Securities Division in Kander’s office. Investors should always check the status of their investment advisor or broker/dealer before making an investment. Missourians can do so by contacting the Missouri Investor Protection Center either by calling the Investor Protection Hotline at 1-800-721-7996 or by visiting www.MissouriSafeSavings.com.
Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.
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