{"id":36226,"date":"2008-03-26T16:35:41","date_gmt":"2008-03-26T21:35:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/wireless-telecommunications-investment-scams.html"},"modified":"2008-03-26T16:35:41","modified_gmt":"2008-03-26T21:35:41","slug":"wireless-telecommunications-investment-scams","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/law-library\/wireless-telecommunications-investment-scams.html","title":{"rendered":"Wireless Telecommunications Investment Scams"},"content":{"rendered":"
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The Federal Communications Commission (FCC) is offering guidelines to help protect potential investors in wireless telecommunications services from being defrauded by unscrupulous promoters. Recently there has been a surge in the number of reported cases of fraud in emerging telecommunications services such as Paging, Specialized Mobile Radio (SMR), Wireless Cable, Interactive Video and Data Services (IVDS), Personal Communications Service (PCS) and Cellular Radio Telephone (underserved areas).<\/p>

Telecommunications is an undeniably alluring, fast-paced, multi-billion dollar industry. Combine that with brain-numbingly complex technologies and it creates the perfect environment for scam artists. The problem for the potential investor is differentiating opportunity from opportunism.<\/p>

Separating truth from fiction in these sophisticated scams is not easy. However, the experience gained by the FTC and other agencies prosecuting these types of scams suggests some common warning signs that should alert you that the investment proposal may not be legitimate.<\/p>

Common Warning Signs:<\/font><\/h2>
  • COLD CALLS & INFOMERCIALS<\/b>:<\/font> If the first contact with the telemarketer is an unsolicited call from a salesperson whom you do not know – be skeptical! Another favorite tactic for luring investors is via television or radio infomercials. Don't trust a stranger!<\/i><\/li>
  • HIGH PROFITS-LOW RISK:<\/b><\/font> Scam artists are clever liars. If the sales representative promises high profits with little or no risk, hang up the phone!<\/i><\/li>
  • URGENCY:<\/font><\/b> Beware of promoters who say that it is urgent to invest now. Swindlers do not want you to have time to think things over. Some may even pressure you to promptly send your money by courier or wireless transfer. When they say "rush," you say "whoa!"<\/i><\/li>
  • IRA FUNDS:<\/font><\/b> Many scam artists claim that their investments have been approved for use in Investment Retirement Accounts. There is no formal, government approval process for certifyingthe appropriateness of funds for IRA status. Don't believe them.<\/i><\/li><\/ul>

    Avoiding Fraud:<\/font><\/h2>
    • BE SKEPTICAL<\/font>:<\/b> The best protection against being scammed is skepticism. Investigate thoroughly any representations from sales persons BEFORE sending any money because, if duped, you are unlikely to recover any of it . Make sure you fully understand the telemarketers' answers to your questions. Continually ask yourself whether their answers are reasonable. At the end of this pamphlet we have provided a list of contacts to assist you to check the telemarketers' answers independently.<\/li>
    • HIGH RISK<\/b>:<\/font> A venture which seeks to obtain immediate, short-term profits from ownership of an FCC licensed or authorized service is a high-risk enterprise. Investors can and do lose money. In evaluating your risk tolerance, you should consider whether you can afford to lose your entire investment. If it sounds too good to be true, it probably is.<\/i><\/li><\/ul><\/td>