FOR IMMEDIATE RELEASE
Wednesday, July 13, 2005
Contact: Stacie Temple, (573) 526-5076
Carnahan Alerts Missourians To Phony Securities Regulator
Jefferson City, Missouri -- The Missouri Commissioner of Securities, David B. Cosgrove, issued a Cease and Desist Order earlier this week against "Securities Compliance Department," a bogus entity claiming to be a securities regulator located in Kansas City, Missouri.
An investor contacted the Missouri Securities Division in Secretary of State Robin Carnahan's office to report a phone call he received from the "Securities Compliance Department." Months before, the investor was a victim in an international investment fraud. Posing as a securities regulator, a caller named "Shore" claimed that the "Securities Compliance Department" could help him recover some of his loss-but only for a fee.
Shore told the investor that he would have to pay over $20,000 to the "Securities Compliance Department" to get his money back. He also gave the investor a false Kansas City Missouri telephone number and address along with a website address (www.scd-gov.us).
Secretary Robin Carnahan warns investors against 'recovery schemes' such as this one. These schemes target investors who have already lost money and promise to help them regain that loss for a fee.
"It is important for investors to be suspicious anytime they receive an unsolicited telephone call from an unknown individual asking them for money. Plus, a legitimate regulatory or oversight agency is certainly not going to ask for money to provide consumer protection," said Carnahan.
The "Securities Compliance Department" claims to "promote investor confidence in the securities and capital markets by providing more structure and oversight" and "uncover companies and individuals with fraudulent activities and securities laws violations."
"The Missouri Securities Division actively pursues leads regarding possible fraudulent companies or transactions and strongly encourages investors with this type of information to contact the division as soon as possible," said Cosgrove.
For more information regarding investments and fraud protection, or for information regarding a company or representative, visit the Secretary of State's web site at www.sos.mo.gov/securities or call the toll-free investor hotline at 1-800-721-7996.
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