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Possible signs of an oil or gas scam

Possible signs of a scam: Tips to protect yourself from potential energy-related scams.
by Brianna Bailey Published: July 7, 2013
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POSSIBLE Signs of a scam

What you should watch for

• Be wary of investments that claim to offer particularly high rates of return.

• Scam artists will attempt to rush investors into making a quick decision to invest.

• Be cautious if the broker or adviser offering the investment has a relationship with the promoter or a personal stake in the transaction.

• Scams sometimes will use sales pitches referring to recent news events such as high oil or gas prices.

• Ask to see well history, and a third-party engineering report of the oil and gas assets being touted.

• Ask what type of reserves have been estimated, and ask for a report, one that has been audited if it is available.

SOURCE: Oklahoma Department of Securities,

U.S. Securities and Exchange Commission