Enforcement: Fraud Prevention
Please investigate before you invest. Tell-tell signs or red flags are there in most investment frauds. Contact the Securities Division to verify that investment products you are considering have been registered for sale in New Mexico and that the salesperson is licensed to sell securities. This is a free service just a phone call away or a few clicks on your computer keyboard.
To learn whether your investment professional is properly licensed here in New Mexico, visit the FINRA Broker Check or IARD for investment advisers.
Protect your nest egg from being destroyed by unscrupulous investment promoters. Learn more about the red flags of investment fraud.
The techniques listed below are examples of misleading or dishonest sales practices. If you experience any of these, contact the Securities Division for more information before you invest.
- Unsolicited offers from strangers via the telephone, mail, or Internet.
- Claims of a "guarantee" profit or that an investment is "risk-free" because it is "insured" by an outside company.
- "Gift," "retirement," or "support" clubs that require you to make a cash "contribution" (investment) and recruit new members (investors).
- Investment deals involving "prime" or "world" banks or overseas funding sources.
- A salesperson who relies on strong emotions or personal beliefs to gain your trust and influence (or pressure) your investment decisions.
- A salesperson who borrows money from you or loans money to you in order to get in on an investment.
- A salesperson who is reluctant to let you sell out of an investment or who offers to "make up" any losses with a new investment opportunity.
If you suspect problems with an investment, notify the New Mexico Securities Division. You may be able to help keep others from becoming victims of fraud.
Contact Information: 505.476.4580