AUGUSTA, Maine — What are known as distressed real estate schemes are on the list of top investment traps that are being highlighted by Maine business regulation officials.
The Office of Securities and the North American Securities Administrators Association say many investors have been taken in amid difficult economic conditions and fluctuations in the stock market.
Many investment traps promise high returns to cash-strapped investors but provide little if any disclosure of risks and offer high commissions to aggressive salespeople.
Top investor traps include offerings of distressed real estate, which have been on the rise after the collapse of the real estate bubble. Swindlers also trick investors by touting the promise of untapped oil and gas reserves and other sources of energy production.
Higher precious metal prices also have lured investors into a variety of scams.