ZPEnergy.com - Carnahan warns about energy scams

From KeelyNet.com News: Secretary of State Robin Carnahan urges Missouri investors to be wary of fraudulent oil, gas and alternative energy solicitations over the next several months. With higher gas prices at the pumps and increasing natural gas, propane and fuel oil costs, the Missouri Securities Division in Carnahan’s office warns that recent trends indicate fraudulent investment scams in various energy ventures are also on the rise.

While many energy offerings are legitimate, some savvy solicitors push fraudulent energy schemes using high-pressure sales tactics and promises of extraordinary returns to prey on unsuspecting investors. "Many oil and gas scam artists use rising oil and gas prices as well as increased interest in ethanol and biodiesel to encourage investment in their phony operations," said Carnahan. "I encourage Missourians to contact our office’s investor hotline to get information regarding any company or investment, especially if it sounds too good to be true," she added. Investments, as well as the individuals offering them, must be registered with the state or have an exemption from such registration. Unregistered offerings should also alert an investor to a potential problem. In recent months, a substantial number of biofuel and other alternative energy ventures have registered securities offerings with the state. At the same time, the Securities Division has noticed an increase in complaints and tips involving energy-related scams. Earlier this year, Carnahan took action in the matter of Emerging Technologies, Inc., a venture in which the promoter claimed to have invented a water-powered car. In April, Carnahan also identified oil and gas scams as one of the "Top 10 Threats to Missouri Investors for 2006." "Unfortunately, whenever we see an increase in the number of offerings or registrations in a certain industry, it is often followed by scam artists mimicking and piggybacking on the work of legitimate companies," stated Missouri Securities Commissioner Matt Kitzi.

Article link: http://www.suntimesnews.com/8C/News%20Archives/Jun_06/0607carn.htm