Securities-fraud investigations up
DENVER ” Colorado’s securities commissioner is reporting an increase in securities-fraud investigations in the tough economy.
Colorado Securities Commissioner Fred Joseph estimated his office, which usually has about 200 active cases, has seen a 10 percent to 15 percent increase in open investigations over last year.
The cases are concentrated in oil and gas ” which took off during the first half of 2008 as fuel prices surged ” real estate and investing, Joseph said. The latter includes several alleged Ponzi schemes, Joseph said.
A spokesman for the U.S. attorney in Denver said the office also is seeing an increase in financial-related investigations.
Fraudulent schemes can become popular in good times, then falter as the economy tumbles and operators struggle to pay investors who demand their money back, experts say.
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