State of Connecticut Department of Banking

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Governor Rell Announces Hotlines to Report Investment, Insurance Fraud
Warns Scam Artists Prey On Financial Fears

This news release was issued by the Governor's Office

October 6, 2008

Governor M. Jodi Rell today is warning residents of investment deals promising low risk and high rate of return and urges them to call state  regulators to verify the validity of the offers.

“Consumers need to be on guard against these hard-sell investment scams that are, unfortunately, all too common in times of economic uncertainty,” Governor Rell said. “Unscrupulous individuals prey on financial fears of senior citizens and others who may see these bogus ‘get-rich quick’ offers as a way to recoup money lost in the volatile stock market.”

The Governor says the state Banking and Insurance departments have the following toll-free hotlines available to answer questions and field complaints:
  • Banking Department: 800-831-7225;
  • Insurance Department: 800-203-3447.

“These high-pressure pitches often come with no-risk promises and involve non-traditional investment opportunities such as oil, gas, gold and even foreign currency,” Governor Rell said. “Legitimate financial advisors would not recommend drastic investment changes based on sudden market news. Investors risk losing even more when they can least afford to as a result of these frauds.”

The Governor urges residents to call the hotlines before making any major investment decisions to determine whether:

  • The salesperson is licensed to sell stocks or policies in Connecticut;
  • The state has taken any enforcement action against them;
  • The investment is properly registered with the state. 

The Governor said consumers have the right to request a written explanation of the investment from the seller before making any decisions.

“In this case, the adage bears repeating: ‘If something sounds too good to be true, it is probably is,’” Governor Rell said. “Use common sense, seek out a trusted professional for his or her opinion. Ask before you invest.”

For more information:
Department of Banking: www.ct.gov/dob
Department of Insurance: www.ct.gov/cid