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DISB Warns of Class Action Suit Claiming to Be from the Agency

Monday, May 16, 2011

DISB Warns of Class Action Suit Claiming to Be from the Agency

DISB warns District investors there is no “Division of Securities” in the District of Columbia government and there is no class action lawsuit as described by this group.

(Washington, DC) — Acting Commissioner William P. White of the DC Department of Insurance, Securities and Banking (DISB) today warned District consumers to be aware of a group that is falsely representing the agency, making claims of a class action lawsuit and seeking money from unwitting investors.

“The organizers of this carefully orchestrated plan intend to defraud investors and separate them from their money,” said Acting Commissioner White. “They are using the agency’s name to legitimize their efforts, as they claim to be going after fraud by some companies. In actuality, they are engaging in the very same activities they accuse others of doing. DISB will do all in its regulatory power to prevent that from happening.”

In the bogus class action lawsuit notice, individuals who claim to be with the “Division of Securities for the District of Columbia,” stated that consumers who invested money with certain companies, may be entitled to financial compensation as these companies were engaged in “unfair business practices, breach of contract, fraud, and violations” of the Federal Trade Commission. Complainants stated that the bogus government division sought money from them for services related to a class action lawsuit. 

DISB warns District investors there is no “Division of Securities” in the District of Columbia government and there is no class action lawsuit as described by this group.

DISB warns District residents to be on the look-out for the false class action lawsuit and do not send any money, if asked. Instead, the agency encourages District residents to contact the Enforcement and Consumer Protection Bureau at (202) 727-8000. Or, if they believe they may have been victims of the scam, they may file a complaint online at http://www.disb.dc.gov/disr/cwp/view,a,1299,q,645396.asp.