Released: March 12, 2006

Top investor traps for ‘06

Source: By Michelle Singletary, Syndicated Columnist

When the North American Securities Administrators Association announced its top investor traps to watch out for in 2006, there were the usual suspects.

On the list again this year were ‘’prime bank schemes.” These are sophisticated scams in which con artists promise high-yield, tax-free returns that are said to result from ‘’off-shore trades of bank debentures.” Investors are told that they are lucky to be privy to such information since only the rich know about such practically risk-free investments.

Need I say there are no such prime bank investments offering high-yield rates. This is a straight-up con.

The association warns investors to watch out for schemes in which promoters offer great returns if you buy pay phones or ATMs. In order to make the deal more attractive, investors are told that after a given period, the equipment can be sold back to the seller at the investor’s purchase price.

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