If you have been approached to invest in an oil and gas venture in California, it is well worth it to completely check it out before signing anything or handing over any money. A legitimate business opportunity offered by an upstanding company should be easy to check out, and the company should have no issues with your inquires. Red flags start to pop up when you get push back or hesitation during your efforts to verify the investment opportunity.
The North American Securities Administrators Association notes that with higher oil prices comes the chance for more oil and gas investment scams. Typically, scams involve having you in a different state than the actual operations. This makes it easier to say there is an operation when there is not because you are less likely to visit the actual site when it is far away.
Scammers like to use complex language and pushy sales techniques. They may approach you online first and use language that guarantees results or says there is little to no risk. These are immediate warning signs because every investments in this field is full of risks and outcomes are never guaranteed.
You can protect yourself through properly vetting any opportunity. Look at the company, the person approaching you and the actual investment they want you to make. Also, look into registration and contact state securities commissions to verify that registration. Ask a lot of questions and get as many details as possible. This information is only intended to educate and should not be interpreted as legal advice.