Watch Out For Oil Spill Cleanup Investment Scams

In a joint statement from the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission, investors have been warned today about the possibility of investment scams being operated by companies claiming to be involved in the massive oil spill in the Gulf of Mexico.

Reads the statement: “While some of the companies touting their role in the cleanup may be legitimate, others could be bogus operations that are only looking to clean out unsuspecting investors.”

In its attempt to alert consumers to the warning signs of a possible scam, the SEC and FINRA has stated to watch out for companies claiming one or more of the following:

• Products or technologies effective in remediating oil spils or restoring the ecosystem;

• Contracts or expected contracts with BP

• Technical expertise provided to BP or government agencies such as the Environmental Protection Agency

• Quick, exponential sales growth.

Slick promotions: Don’t get conned by oil cleanup investment scams [Consumer Reports]