Investing in ‘green’ investments may seem like a no-brainer, but the reality is that there are risks associated with these types of investments. From false statements and unregistered stock to scams, it’s important to understand what kinds of dangers could be lurking before taking on such an investment. This post covers the risks of investing in green energy and how to identify fraudulent opportunities – so you can protect yourself from any potential pitfalls.
The Risks of Investing in “Green” Investments
Many investors have become attracted to “green” investments, but there are some risks associated with these types of investments. Just last year, the Securities and Exchange Commission (SEC) accused San Diego-based Nova Gen Corp. of making false statements and selling unregistered stock.
The company had claimed to possess technology that was capable of converting coal into virtually emissions-free biodiesel fuel, but allegedly projected highly unrealistic revenue based on building power plants that the company lacked permits and funding for.
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Challenges of Differentiating Between Legitimate and Fraudulent Investments
While alternative energy is a popular new investment category, it can be challenging trying to differentiate between the legitimate investments and the scams. If you are considering investing in alternative energy, you may be better off looking into a mutual fund or other similar investment option that would allocate only a small percentage towards this area.
How to Identify and Avoid a Green Energy Scam
To help protect yourself from scammers, the following is a simple question checklist that can help identify warning signs:
- Does the deal seem too good to be true? Be wary of offers with prices that are significantly lower than expected or huge prospective savings.
- Are they asking for personal details including banking information? Never share this kind of information if you’re not sure who you’re dealing with.
- Are there any sketchy details on the contact information, energy deal itself, or details about the company? If so, it may be a sign that it’s not a legitimate organization.
- Is there anything suspicious in regards to spellings and grammar errors on emails and websites associated with them? Poor attention to detail could also signal a scammer.
- Has the company contacted you out of the blue? This could come in the form of an unsolicited cold call or email from an unknown source.
- Are they pressuring you to make decisions quickly without taking time to think them over properly? A legitimate company will never put pressure on consumers to act before they have had all their questions answered.
- Are they asking you to keep their exclusive deal secret and act quickly? This is another technique used by scammers looking to isolate victims into taking up offers without giving them enough time to consider all options available.
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Get Help From Investment Fraud Attorneys
If you have experienced financial loss because of investment fraud, our investment fraud attorneys may be able to help you. We are licensed in Ohio and California and represent clients nationwide with securities arbitration and litigation claims. Contact one of our investment fraud lawyers by calling or filling out our contact form.
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