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A.  INVESTMENT FRAUDS

Phony business opportunities and investment frauds are a common form of consumer exploitation, and many people are defrauded by close friends and relatives as well as strangers!

A wealthy, aged widow desperately sought advice from an attorney on bow to recover a large sum of money--her life savings--that she had invested with a relative who was the accountant for a business deal that collapsed. She was advised that in her particular case there was little that could be done after the fact.

The following guidelines can protect you no matter what form of investment you are contemplating. Review these rules before sinking your money into a business or investment offering.

First Commandment: Never rely on promises from people you don't know.

Second Commandment: Be wary of people who offer deals over the telephone.

Third Commandment: Be suspicious of deals that offer large returns to anonymous investors.

Fourth Commandment: Be skeptical of deals offered in newspaper and magazine ads; most legitimate business opportunities are not marketed this way.

Fifth Commandment: Never be pressured into making a quick decision. If you are told a once-in-a-lifetime deal will pass by unless you act quickly, chances are good that you are being swindled.

Sixth Commandment: Never invest in a deal until you receive written information. Read the literature thoroughly before making any decision.

Seventh Commandment: Investigate the identity of the promoters, organizers, general partners, and other individuals involved in the deal. Do they have a successful track record in other ventures? Ask for bank and credit references.

Eighth Commandment: Analyze how your money will be used. Is it secured? In what is it being invested? Are the organizers receiving an unfair share?

Ninth Commandment: Consult a lawyer, accountant, financial adviser, or other professional before investing large sums in a venture.

Tenth Commandment: Contact the Federal Trade Commission (FTC) or the Federal Bureau of Investigation (FBI) if you have doubts. These agencies maintain a list of companies and individuals who have been indicted and convicted for investment fraud.