Washington, DC — Commissioner Thomas E. Hampton of the DC Department of Insurance, Securities and Banking (DISB) today alerted investors not to allow recent negative economic news and stock market volatility to lead them to high-risk speculative investments, which in some cases, may be fraudulent schemes.

“Some individuals use adverse news to often prey on investors’ fears to promote bogus investments with promises of high return and little risk,” said Commissioner Hampton. “Investors nearing retirement are particularly vulnerable to being targeted by investment schemes promising high returns to make up for recent losses in retirement accounts. We are concerned that investors may allow the uncertainty in current market conditions to lead them into investment schemes that could weaken or devastate their financial position, potentially wiping out the retirement security they worked so hard to build. A hasty decision can make a bad situation worse.”

Whether the markets are up or down, there are always those who will attempt to prey on the investing public, according to the Commissioner, and investors should particularly guard against high-pressure sales pitches for unregistered securities and non-traditional investments such as foreign currency, oil and gas investments, unusual financial products or so-called opportunities to send money to purchase interests in offshore investments.

Commissioner Hampton reminded investors to:

• Hang up on cold callers and disregard unsolicited email messages promoting investments opportunities with little or no risk.


• Contact DISB’s Securities Bureau at (202) 727-8000 to check if both the seller and the investment are licensed and registered. If they aren’t, don’t invest.


• Request written information about any investment from the salesman; carefully review it or ask your financial adviser to evaluate it.


• Use common sense! Get-rich-quick promises are signs of investment fraud.


• If you suspect you’ve been scammed, report it to DISB’s Enforcement and Investigation Bureau or the Securities Bureau at (202) 727-8000 or visit DISB’s website at disb.dc.gov. Help us to help others from losing money.

Commissioner Hampton also noted that legitimate financial professionals generally do not recommend changes to investment portfolios based on short-term economic news and market volatility. “Investors, especially those nearing or in retirement, should view with great skepticism any recommendation to switch from a well structured, diversified investment portfolio to an alternative investment product that may entail high commissions; high fees; complicated terms; and unsuitable risk,” he added.