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Investor Alert: Notice of Possible Stock Scam

Last Updated: October 23, 2007 Related resource areas: Personal Finance



Potential investors can avoid being victimized by securities fraud by investigating before they invest. A current scheme in Alabama involves convincing legitimate stockholders to sign over their existing stock shares and invest additional cash to buy shares of so-called "blue-chip" stocks.


Released Oct. 19, 2007

AUBURN UNIVERSITY, Ala. -- The Alabama Securities Commission (ASC) warns potential investors to beware of offers from Clinton-Parker, a company purportedly headquartered in the Virgin Islands, that could possibly be part of a widespread fraudulent stock investment scheme.

"This company is not registered to conduct securities business in Alabama and we caution Alabama investors to report any contact or solicitations from individuals claiming to represent this company," said Joseph P. Borg, ASC director.

Individuals approached by Clinton-Parker describe a scheme that involves convincing legitimate stockholders to sign over their existing stock shares and invest additional cash to buy shares of so-called "blue-chip" stocks. According to reports, the investor signs over the stock and invests additional funds but receives nothing in return.

"Don't be deceived by these types of offers," Borg cautioned. "These solicitations appear to be nothing more than an attempt to get investors' money up front. Borg warns all potential investors to avoid being victimized by securities fraud by investigating before they invest. If you have been approached by an individual claiming to represent Clinton-Parker, immediately contact the ASC at 1-800-222-1253 and speak with its Enforcement Division.

Anyone having questions or concerns about securities broker-dealers, agents, investment advisors, investment advisor representatives, financial planners, registration status of securities, suspected fraud or seeking consumer information are encouraged to contact the ASC.

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http://www.extension.iastate.edu/news/2007/oct/021601.htm

Contact: Donna Reynolds, (334) 844-5686


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