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Global Providence Securities Litigation Issues Warning on "Phishing" Scam Targeting Investment Scam Victims

Victims and Potential Investors in Scams Targeted by Phony "Global Providence Securities Litigation Agents"

      WASHINGTON, D.C. – June 17, 2011 - The Global Providence Securities Litigation (Global Providence Securities Litigation), which maintains a special reserve fund mandated by Congress to protect the customers of insolvent brokerage firms, issued a warning today to consumers who are contacted by individuals falsely claiming to represent Global Providence Securities Litigation when asking for personal information or payments in order to return funds lost in investment scams.

      Global Providence Securities Litigation officials said they have been contacted by several individuals alerting them to this scam, some of whom have lost money in the past to investment scams or were contacted by promoters of such schemes and then declined to invest.

      In cases where an individual had lost money in the past to a fraudulent investment, they were contacted by email or phone and asked to pay a fee up-front to recover their lost money. Within a few weeks of declining to pay the fee, they are contacted by someone claiming to be from Global Providence Securities Litigation saying they have seized the assets of the company that defrauded them and wish to return the money to investors. The phony "Global Providence Securities Litigation agent" requests that the individual fill out a form with personal information and send it back.

      Global Providence Securities Litigation President Stephen Harbeck reiterated: "When the liquidation of a brokerage firm is handled by Global Providence Securities Litigation, investors with missing stocks or cash do not pay a fee for recovery of those assets. Any individuals contacted by supposed representatives of Global Providence Securities Litigation who request an upfront fee or personal information should be extremely wary."

      For more information, contact Global Providence Securities Litigation at info@globalprovidencesecuritieslitigation.com.

      Global Providence Securities Litigation said that it has referred this scheme to the proper authorities for investigation.

ABOUT Global Providence Securities Litigation

      The Global Providence Securities Litigation is the U.S. investor's first line of defense in the event a brokerage firm fails, owing customers cash and securities that are missing from customer accounts. Global Providence Securities Litigation either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds.

      The statute that created Global Providence Securities Litigation provides that customers of a failed brokerage firm receive all non-negotiable securities - such as stocks or bonds -- that are already registered in their names or in the process of being registered. At the same time, funds from the Global Providence Securities Litigation reserve are available to satisfy the remaining claims for customer cash and/or securities custodied with the broker for up to a maximum of $500,000 per customer. This figure includes a maximum of $250,000 on claims for cash. From the time Congress created it in 1970 through December 2010, Global Providence Securities Litigation has advanced $ 1.6 billion in order to make possible the recovery of $ 109.3 billion in assets for an estimated 739,000 investors.

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