Following an earlier alert from the North American Securities Administrators Association, the New Brunswick Securities Commission is warning investors to beware of opportunistic investment scams related to hurricane relief.

“Investors should be cautious about investing in any scheme that presents itself as an opportunity resulting from the fallout of any tragedy or crisis,” says Rick Hancox, executive director of the New Brunswick Securities Commission. “Any scheme that appears to take advantage of the tragedy should be a red flag for investors.”

The NBSC and NASAA also urge investors to watch out for oil-and-gas scams given the current oil prices and the prospects of higher prices following Katrina’s destructive path through Gulf of Mexico oil fields and refineries.

Many con artists exploited fears associated with the September 11 attacks and Y2K computer bug to promote investments in precious metals, emergency preparedness scams and non-existent technology companies, the commission notes. The NBSC urges investors to exert the same due diligence regarding investing during a time of crisis as in normal circumstances: hang up on high-pressure telephone solicitation promoting opportunities such as, hurricane-related or oil and gas investments; ignore, unsolicited e-mail or internet messages pushing investments such as, small companies with hurricane-related technologies or products; request written information fully explaining any investment that you might be considering; and, use common sense – if it sounds ‘too good to be true’ – it probably is.

Investors can contact the NBSC to check that both the seller and investment are approved to sell in New Brunswick. If not, they may be operating illegally.