The Alert Investor EPISODE 3: “Avoid Slippery Oil and Gas Scams” Skyrocketing oil and gas prices seem to be making headlines every day… and while you may have felt the pain at the pump… beyond the sticker shock of those rollercoaster oil and gas prices lurks a favorite ploy of scam artists… More on how to avoid slippery oil and gas rip-offs in this edition of the Alert Investor… brought to you by NASAA … the voice of state and provincial securities regulators. [OIL REFINERY AND GAS PUMP] Energy sources like gas and oil are vital to our daily lives and crucial to our global economy. Every day in markets from Asia to America brokers trade these energy commodities… Because energy is a mainstay for the worldwide marketplace... investing in oil and gas ventures can seem an easy way to make a buck. But the volatility of such deals comes with a host of risks for investors… NASAA President Joe Borg… “The best scams are ripped right out of the headlines. What’s in the headlines these days? Oil and gas prices of course. In recent years most energy projects can seem attractive to investors. But most of these investments are highly risky and not appropriate for small investors. And even where the underlying project is legitimate, any revenues can be absorbed by high sales commissions paid to promoters and dubious expenses skimmed off by the managing partner. The game isn’t really high-level fraud… it’s usually more a total misuse of proceeds – take an investors’ money and buy yourself a fancy car or boat.” In the past 2 years state and provincial securities regulators have opened more than 260 cases involving oil and gas schemes and issued 122 cease and desist orders against the promoters. NASAA issued an investor alert about these fraudulent oil and gas deals to warn investors and offer tips to avoid such scams…. Most scam artist target individuals usually through an unsolicited phone call offering a great business opportunity. Investors can protect themselves by taking three steps to avoid these swindlers. First… independently research the background of the promoters; Second… get a clear explanation of the deal in writing and Third… carefully read the fine print. Businesses that raise money by soliciting investors must comply with local securities laws, so remember to investigate before you invest. And don’t forget, if you have any questions you can contact your local securities regulator by checking out our website at www.nasaa.org. NASAA…. Because every investor deserves protection.