The Colorado Division of Securities has issued a statement on bogus investment and relief schemes prompted by the Colorado floods.
On October 1, 2013 the Securities Division of DORA, Colorado’s Department of Regulatory Agencies, issued a warning that cautions residents and investors to “beware of opportunistic investment schemes related to rebuilding and recovery efforts” in the aftermath of the devastating Colorado floods of the past month.
Fred Joseph, Banking and Securities Commissioner of the state’s consumer protection agency, explains in the statement,
There will be fraudulent charity solicitations. Some will be looking for your money; some will be attempting to steal your credit card information for identity theft. As with any charitable contribution, people wanting to help with relief efforts following the flooding should send contributions to only those charities with an established track record.
He also warns on perpetrators of fraud who might approach potential investors via social media, urging that consumers
[do] not donate to unknown individuals that purport to need aid that post on Facebook, Craigslist, Twitter or other social media sites. These are likely to be fraudsters, much less a victim of the flood.
Commissioner Joseph further notes that
cold-calling telephone salespeople, advertisements, and Internet postings that promote investment pools or bonds to help flood victims, or tout water-purification technologies and distressed real estate remediation programs should be a red flag for investors.
The strongly worded statement calls upon state residents and nationwide investors who wish to help those affected by the Colorado floods to use caution and common sense in donating or investing their money, in order that their financial assistance does not end up in the hands of thieves.
The full text of the Division of Securities statement can be accessed [here.]
Those looking to donate are instead directed to HelpColoradoNow.org, an informational site run by the Colorado Division of Homeland Security and Emergency Management, which includes links to reputable and established relief organizations.