Combating the Cons: Where Should Victims of Financial Scams Turn?

By , Contributing Writer, Money Morning •

Today's story "Classic Cons: 10 Financial Scams Fair-Minded Investors Should Avoid," describes just a few of the financial scams investors should watch out for. If you have reservations about a potential investment opportunity, or if you've been victimized by a financial scam, you might turn to one or more of the following agencies.

Better Business Bureau - With offices nationally, in every state and most large and mid-sized cities, the BBB can alert you to problems with local businesses, work-at-home programs, distributorships, sales routes you can buy and other one-on-one type rip-offs. They usually have lists of current online offers that are suspect or drawing lots of complaints. You can access the national BBB Web site at http://www.bbb.org/us/ and navigate to your home state or city chapter from there.

U.S. Securities and Exchange Commission (SEC) - Information is available on all securities-related fraud issues and investment scams, and you can file your own personal complaints or suspicions online at http://www.sec.gov/complaint.shtml. You can write them at: Securities and Exchange Commission, Office of Investor Education & Assistance, 450 Fifth Street, N.W., Washington, D.C. 20549-0213, or fax a complaint to 202-942-9634. You also can verify financials and regulatory standing on all publicly traded U.S. companies by accessing the SEC's EDGAR Database at: http://www.sec.gov/edgar.shtml.

Your SEC complaint can be anonymous or you can provide only limited personal data. However, the more information you give them, the more likely they'll be able to help you. Either way, include specific details about how, why and when you were bilked with any contact info you have on the fraudulent person or company involved.

U.S. Commodity Futures Trading Commission (CFTC) - If the scam involves commodity futures or options rather than stocks or bonds, the CFTC can help at: http://www.cftc.gov/

Internal Revenue Service - Since most scammers don't pay taxes, the IRS tries to keep track of them as well - not only to put them out of business but to prevent having to let you deduct your fraud losses. Check out posted IRS fraud information at: http://www.irs.gov/privacy/article/0,,id=179820,00.html?portlet=5.

U.S. Federal Bureau of Investigation (FBI) - For any kind of Internet fraud, bank-related scams or other interstate criminal activity, check with the FBI or report complaints at: http://www.fbi.gov/. (Just for fun, you can also review the "10 Most Wanted" list on the FBI home page to see if you recognize anyone.)

Financial Industry Regulatory Authority (FINRA) - A professional association of investment regulators and agencies, FINRA has a Web page where you can check out your broker's credentials and review past complaints: FINRA - FINRA BrokerCheck.

If you've already been victimized, you might also get some combined help from all of these government agencies and others thanks to a new joint task force designed specifically to investigate and prosecute financial fraud cases. The new team, announced in late May, will be based in Virginia instead of the more usual New York.

The U.S. Attorney's Office in Richmond told USA Today the task force will try to coordinate local, state and federal anti-fraud efforts, the goal being to channel cases to the Federal Court for the Eastern District of Virginia, which has what is known as a "rocket docket." That means cases can go from indictment to trial in just 90 to 150 days, whereas it usually takes more than a year in other jurisdictions.

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