SCC Warns Virginians Fraud Investment Scheme

scc.virginia.gov, Mar 13, 2006

Richmond Consumers face a dizzying array of investment opportunities. Although many are legitimate, some are not. The State Corporation Commission (SCC) urges Virginians to avoid falling victim to financial predators by investigating before you invest.

"Investors should keep their guard up anytime anyone offers an investment opportunity. It pays to remember that if an investment sounds too good to be true, it usually is," said Ron Thomas, director of the SCC's Division of Securities and Retail Franchising.

Investment choices available to consumers are becoming increasingly complex and confusing. Some may be ill-suited for a particular person's investment goals. Others may be downright fraudulent. Investors lose billions of dollars to investment scams each year, and Virginians are no exception.

The SCC recently held an enforcement proceeding against Robert Heath Fox and Richmond-based Fox Development Group for allegedly selling unregistered securities in Virginia. The Securities Division initiated the case after receiving complaints from investors in Virginia and elsewhere who had invested at least $36,000 in promissory notes and other investment contracts through this company.

Thomas encourages Virginians to remain vigilant in the fight against investment fraud. "Con artists are constantly devising new ways to cheat investors out of their hard-earned money. Knowledge is your best defense against investment fraud," he said. "Ask yourself if claims for the investment are realistic. Be very skeptical of investment offers promising high returns with little or no risk."