Sometimes even a country's leaders can be taken in by bogus investment opportunities.

At least, in Bermuda they can. But Government whip Ottiwell Simmons was happy to tell MPs yesterday how he had been hoodwinked in an effort to pass legislation saving others from his same fate.

The issue of bogus investments and pyramid schemes came up in the House of Assembly yesterday after Acting Finance Minister Paula Cox tabled a whopping 89-page Investment Business Act, warning that it might be "boring".

Two years in the making, the legislation intends to strengthen Bermuda's regulatory framework and the investment marketplace generally, covering any person who is in the business of providing investment services.

One of the benefits Ms Cox highlighted was to the "unsophisticated investor.

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"The legislation must include the best means to safeguard investors from individuals who are not as scrupulous in dealing with other peoples' hard earned money," she said.

Shadow Finance Minister Grant Gibbons was concerned that the public also be more educated against such schemers, however, citing a call he had recently received from a "Frank from New York" attempting to persuade him to invest his own hard-earned money into Frank's company.

This prompted both Shadow Legislative Affairs Minister John Barritt and Deputy Speaker Walter Lister to admit they also had received calls from mysterious Franks throughout the world and brought Mr. Simmons to his feet to share his story with the House.

"One Frank called me from Switzerland," he said, adding this Frank had sounded legitimate because of the way he said "Switzerland".

"I did send some dollars as he requested me to do."

The Frank sent "proof" that the bogus company existed, including an email address and a phone number. However, said Mr. Simmons, when he tried to dial the number it was out of order, and the email never existed.

"People should not be taken in by the Franks of this world! " said Mr. Simmons. "Legislation is one thing but education is important."

"That confession was a shock to me," said Mr. Barritt. "I thought he was smarter and more wily than that."

Under the act those who fall victim to unsolicited calls from fraudsters will have the legal right to recoup cash but only if they did not have any other contact or sign anything.

Dr. Gibbons said this would be difficult to apply "if Frank was in Switzerland.

"It's not very useful for anyone to take action unless Frank is in Bermuda."

The minister said it could apply abroad but only where there was a reciprocal arrangement such as in the States.

All the MPs warned members of the public to think before they invest, with Mr. Lister saying if something sounded too good to be true it probably was, and Ms Cox asking Bermudians to "be careful and don't be silly".

She also pointed out that all four MPs contacted by Franks shared some similar characteristics which perhaps made it not surprising that they were targeted.

The Bermuda Monetary Authority (BMA) is currently developing investor protection courses and seminars to educate the public against the Franks of the investment world, she said.

However the issue of what protection the new act would have for dealing with pyramid schemes was unclear.

Dr. Gibbons said: "I have heard a lot about educating unsophisticated investors."Ms Cox said: "The authority would have more powers to police the perimeter.

Opposition Chief whip Maxwell Burgess pressed her on the point but Ms Cox repeated the act gave some powers but she added that pyramid schemes differed.

Dr. Gibbons said: "It will save everyone a lot of trouble if you state up front whether pyramid schemes are illegal."

The bill also requires auditors to blow the whistle to the BMA on wrongdoing in an investment provider or face a maximum fine of $25,000 but the Minister said it was expected the guilty company be first given a chance to clean up their act.