BANDON - Oregon investors are facing increasingly complex and confusing investment frauds, and Vincent Galindo of the state's Division of Finance and Corporate Securities is on a mission to alert potential victims.

"Although seniors are the No. 1 target, economic crime happens to everybody, whether you're 25 or 95, so you always have to be diligent," Galindo told residents at Oceanview Care Center in Bandon on Feb. 13. "I don't want to needlessly frighten folks, because there are a lot of honest, reputable people and companies out there. But it's that ugly minority that can wipe people out. I've seen people lose their homes, their life savings, because they trust too much."

Galindo, who spends several days a week traveling around the state, said he hopes to visit every community in Oregon to help prevent investors from being ripped off. He speaks at retirement homes, senior centers, chambers of commerce, community clubs, and other venues where he can warn people about scams.

"Hopefully, through these visits and the news media, we can help prevent crime and also let every Oregonian know that we exist and that they can use us as a free resource," Galindo said.

Economic crimes depend on deception and fraud rather than violence or physical force. Division of Finance statistics say that Americans lose some $40 billion annually through fraudulent investments.

Victims of the scams usually don't check out these "investment opportunities" or ask appropriate questions before forking over their hard-earned cash, Galindo said. Part of the reason for that may be that they don't know where to turn for answers.

"Frankly, a lot of people don't know that we exist," he said. "They may feel they'd like to check out their broker, but they don't know who to call."

The Division of Finance has access to brokers' and financial advisers' disciplinary histories, and information about customer complaints. It also has information about any lawsuits that brokers or financial advisers may have been involved with, whether they've filed for bankruptcy in recent years, and even what the agents scored on their professional exams.

The division is part of the Oregon Department of Consumer & Business Services. It can be reached toll-free at (866) 814-9710. Calls are kept confidential.

"If you have a stock broker or financial adviser and you haven't checked them out in the last 12 months, I would encourage you to call us to see if they're licensed," said Galindo. "You might be pleasantly surprised to find out that your broker checks out and has no customer complaints."

People do more pre-purchase checking on digital cameras and televisions than they do on the person they're trusting with their life savings, according to Galindo.

"Check out your broker; ask important questions. There are no dumb questions. It's your money," he said.

The Division of Finance's annual top 10 list of schemes and scams includes three new categories this year: senior investment fraud, mutual fund practices and variable annuities. (See sidebar.)

"Investors face a complex maze of scams, schemes and scandals," said Floyd Lanter, division administrator. "Each year con artists find new ways to fleece the public as well as employ age-old scams to cheat victims of their hard-earned savings. Everyone should remember that if an investment opportunity sounds too good to be true, it usually is."

People who believe they are the victims of an investment scam shouldn't hesitate to call the division. The sooner a complaint is filed, the more quickly action can be taken to protect investors.

Economic crime is increasing in terms of the number of victims, according to Galindo.

"A lot of people here may feel that the $102 million lost to economic crimes in Portland isn't relevant to them because that's a big city," he said.

"But we've seen on the East Coast that crooks actually target the smaller, rural areas more because they, rightly or wrongly, believe those people are a little more naive, a little less fiscally savvy."

Galindo, who accepted his first government job with the division about nine months ago, graduated from the University of California at Berkeley. He worked for a law firm in securities litigation, then at an investment bank. But it was during his stint as a financial adviser for a money management firm in Portland that he learned many people are too busy to take the time to do appropriate research.

"Just like in matters of law or medicine, or even car repair, you have to trust a lot of people," he said. "You just hope that the person you're paying is giving you objective advice that's in your best interest."

Galindo is enthusiastic about warning potential scam victims and letting the public know there are resources available for protecting vulnerable people.

"It's utterly despicable when people target other people's fears and try and get money out of them," he said. "But it's much more despicable when they target the seniors. That's what gets me up every morning."

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On the Net:

Oregon Division of Finance and Corporate Securities

http://www.oregondfcs.org

North American Securities Administrators Association's new interactive Fraud Center

http://www.nasaa.org