The North American Securities Administrators Association has released a list of the Top 10 scams, risky investments or sales practice abuses they’re fighting.

New to the third annual list are unscrupulous brokers, conflicts of interest in analyst research, charitable gift annuities, and oil and natural gas scams.

“Record-low interest rates and a bear market on Wall Street have created a bull market in fraud on Main Street,” says Joseph Borg, president of the NASAA and director of the Alabama Securities Commission. “Con artists know investors are concerned about the volatile stock market and low yields on bonds and bank deposits, so they pitch their scams as safe alternatives and promise high returns – an impossible combination.”

The 2002 list was again topped by independent insurance agents selling risky
or fraudulent securities. While most independent insurance agents are honest professionals, says Borg, too many are letting high commissions lure
them into selling high risk or fraudulent investments.

“Putting people in jail gives investors the biggest bang for their regulatory buck,” said Borg. “So legislators at all levels need to ensure that regulators and prosecutors have sufficient resources to successfully bring securities fraud cases.”

The Top 10 investment scams, ranked roughly in order of prevalence or seriousness: unlicensed individuals, such as independent insurance agents, selling securities; unscrupulous stockbrokers; analyst research conflicts; promissory notes; ‘prime bank’ schemes; viatical settlements; affinity fraud; charitable gift annuities; oil and gas schemes; and, equipment leasing.