Investors warned of scams

With spending on the rise, the Utah Division of Securities cautions investors to watch where their money goes and, more importantly, to make sure it gets where it is intended.

Enforcement actions in three separate securities fraud cases were put in order Friday after several Utah citizens fell victim to various investment scams.

"The holidays bring out the best in people, as well as the worst in a few among society, who are hoping the hustle and bustle of the season might lull you into not seeing the red flags of an investment opportunity or purchase of a product or service," said Francine Giani, executive director of the Utah Department of Commerce.

Noting that the scam artists are at work 24-7 and don't take the holidays off, Giani and Wayne Klein, director of the Utah Division of Securities, announced orders against a promoter of resort investments in South America, a Chicago-based brokerage firm investigated for stock manipulation and a cable television installation scheme headed by a Utah convict who continued soliciting investments in the company from prison.

"During this season when the economy is on the move and our wallets and pocketbooks are open, it is more imperative than ever to 'investigate before you invest,' " Klein said. "When it comes to a person's life savings, retirement funds, and anything hard-earned it's OK to be a bit of a Scrooge."

Giani urges citizens to check out opportunities before they invest.

"The idea of being able to make an investment and earn a return might seem appealing," she said. "But in all of the actions we've taken here, the victims, had they contacted our office first, would have avoided losing their savings."

Potential investors are encouraged to visit the Division's Web site at www.securities.utah.gov to get information about these cases and see what other enforcement actions have been taken.