What should I do if I am approached by someone offering a “great” investment opportunity?

If you are approached by someone offering a “great” investment opportunity, you should proceed with caution. It is important to do your research and verify that the person offering the investment is registered with the securities regulator in the state of California. You should also ask for a prospectus, which outlines all the risks associated with the investment. It is important to read the prospectus and assess the potential risks of investing in the opportunity. If something doesn’t seem right about the investment, you should trust your gut and not proceed with it. Additionally, before you invest, it is important to be aware of common types of investment fraud specific to California, such as Ponzi schemes and offering frauds. Ponzi schemes involve a promoter using money from current investors to pay off previous investors, while offering frauds involve the illegal sale of unregistered securities. Before investing, you should make sure to contact the appropriate enforcement body to verify that the investment is legitimate. Finally, if you have already invested in a questionable investment opportunity, contact the California Department of Business Oversight or your local securities regulator as soon as possible to report the fraud. If you have lost money as a result of the fraud, you may be eligible to receive compensation through the state or federal court systems.

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What should I do if I am approached by someone offering a “great” investment opportunity?

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