Jefferson City, MO. – (April 24,
2007) -- Secretary of State Robin Carnahan (
http://www.sos.mo.gov)
urges Missourians to use caution when considering real estate
investment ventures in light of the recent increase in complaints
to the Securities Division
From individuals offering fellow church members a bogus
opportunity to make a fortune in house flipping to scammers
selling 50 percent interests in one property to multiple
investors, the Missouri Securities Division has confronted
varied real estate issues over the last several months,
including cases involving time shares, mortgages, and
non-existent commercial properties.
"Real estate has been a particularly popular investment
in the past several years that attracts many novice investors,"
said Carnahan. "But, with a downturn in the current
real estate market, we are beginning to hear more and
more about corrupt individuals seeking to cash-in by taking
advantage of Missouri investors."
The Securities Division has received many complaints
about fraudulent or unregistered real estate investments
offered and sold by unregistered individuals. Currently,
the Securities Division has twelve open investigations
and ongoing administrative actions regarding real estate-related
schemes. While the Division has open investigations in
every region of the state, the real estate-related cases
are particularly concentrated in the Springfield-Branson
area.
In one real estate case, an unregistered individual enticed
a Missouri resident to invest over $250,000 in non-existent
commercial real estate. The individual allegedly used
the Missouri resident's investment for personal expenses,
including purchasing a car and a car stereo. In another
case, a Springfield couple allegedly sold a 50 percent
ownership interest in the same property to six different
investors.
"The increase in these real estate-related schemes
is attributed to several factors," stated Commissioner
of Securities Matt Kitzi. "The downturn in the housing
market and concerns in the subprime lending market increase
the risk in a real estate investment, and now it appears
that many unscrupulous people are looking to pass that
risk to unsuspecting people."
For more information regarding investments and fraud
protection, or for information regarding a company or
representative, visit the Secretary of State's web site
at www.sos.mo.gov/securities
or call the toll-free investor hotline at 800.721.7996
SOURCE: Missouri Secretary of State
