Investor's Watchdog.com: Stock, finance and investment protection for investors

Al Gore gave us more than a better understanding of global warming.  Unintentionally, by bringing the need for alternative fuels into the public consciousness, he inspired financial scamsters to create frauds based on that need.  The SEC claims that Nova Gen, of San Diego may be one such scam.  In addition to Nova Gen Company, the SEC’s complaint names CEO Margaret Grey and sales agent Paul Randall Fraley.

The SEC claims that the defendants falsely claimed to have technology capable of converting coal into bio-diesel fuel virtually emissions-free, and even claimed that hey had a plant up and running.  The SEC says that Nova Gen had no such plant, no such technology, and no revenue.

Notice two things about this case.  First, notice that the claims at the center of investment involved a supposed solution to a challenge that has lately been in the news.  Many financial scams take advantage of headlines.  Headlines give scam artists a head start at establishing the credibility so important to their success.

Finally, notice that the defendants claimed to have a working operation.  You cannot assume that even a casual visit to the supposed plant would have revealed a fraud.  Scam artists are notoriously good at creating the illusion of legitimacy.  If they claim a working plant, they likely had an operation that would have appeared to be a plant to any inquiring investor.

The only way to protect your nest egg from a cleverly-disguised scam is to hire an investor protection company that has seen hundreds of scams and can recognize the subtle hints.  Do what banks do when they move cash.  Hire private protection.