They each sounded too good to be true – and for some, too good to pass up.

A bogus company set up to receive and pool money to invest in “secret, bank-only” investment programs for projects such as rebuilding Iraq raised at least $37,000 from 11 Iowa residents, who were promised monthly returns of 5 to 50 percent.

An offer to buy bonds issued by companies that would purportedly build and operate traumatic head injury treatment centers garnered $1.2 million in investments from at least 10 Iowans.

Another deal that promised returns as high as 3 percent per day was snapped up by Iowa investors, who sank at least $300,000 into the scheme before the Iowa Insurance Division shut it down last month.

In response to a bill approved last year by the Legislature, the Insurance Division has established Invest Smart, an investor education program aimed at Iowa residents 50 and older. Through a contract with ZLR Ignition, a Des Moines advertising agency, the division has launched a statewide consumer-awareness campaign. In addition to targeting media outlets throughout the state for articles and editorials, the program consists of radio and television ads, as well as a Web site and toll-free number for taking consumer complaints.

The division began receiving calls on the toll-free number almost immediately after the first radio ad aired on Sept. 26, said Craig Goettsch, the Insurance Division’s superintendent of securities.

The campaign focuses on people age 50 and above for a couple of reasons, Goettsch said.

“Based on telephone surveys (of Iowa residents) over the summer, it’s very clear that the population 50 and above have more investment problems: 17 percent versus 10 percent of the population,” he said.

“Another reason we want to target that age group is that they’ve accumulated assets; unfortunately, that makes them a target for fraud,” Goettsch said. “We see it on a day-to-day basis. That group does not have the ability to replace those assets, so the impact is greater for someone who loses their savings who does not have that earning potential anymore.”

Approximately $335,000 from two large fraud settlement payments the state recently received is being used to initially fund the program. All the money the state receives from securities fines and settlements will now go toward funding the program, rather than into the General Fund, Goettsch said.

The bulk of the media dollars to be spent, $80,000, will buy time on television stations to air the announcements on a staggered schedule through mid-November. The division also hopes the stations will also provide public service announcement slots, he said.

The announcements will focus on educating older Iowans on how to recognize the signs of a potentially fraudulent investment pitch, and emphasize contacting the Insurance Division for assistance in checking out companies before investing.

“Sales pitches that promise high returns with no risk, salespeople who insist on an immediate commitment or investments whose payoff depends upon recruiting other investors should immediately raise a red flag,” Goettsch said.

“One of the things we’re emphasizing is that we’ve seen a lot of scams using local sales forces, with money going out of state,” he said. “We just want people to check with us: find out if the person selling you the investment is licensed. It’s a big red flag if they’re not licensed. Also, find out if the product is registered. We can access the (U.S. Securities and Exchange Commission) Web site or look at our database.”

Iowa Insurance Commissioner Susan Voss said investment brokers also need to be vigilant and report potential scams.

“I have had licensed stockbrokers call me since I’ve become commissioner and say, ‘This is what I heard on the street. I’ve had one of my clients tell me about this; we’re getting pressured, why aren’t you selling this?’” she said. “If brokers are getting pressured like this, we would like to hear from them, whether it’s the licensed person or the investor. It’s in their interest, because if they’ve got an angry client, they can come back and say, ‘I’ve talked to the securities commissioner; it’s a scam, it’s not licensed, you don’t want to be in it.’”

For more information, to check out a potential investment or to register a complaint, visit www.investsmartiowa.org or call the Insurance Division toll-free at (877) 955-1212.