HONESTY WATCH : Caveat Emptor

Blitzed and sometimes bewildered by the information revolution, the public is also vulnerable to exploitation. This is a frontier in every sense of the word, full of both technological possibility and opportunities for swindlers. Let the consumer beware.

Late last year, the president of a trade group for wireless cable television ventures deplored the existence of scam operations within his own industry. Wireless cable grew out of decisions by the Federal Communications Commission in the 1980s to free up channels for commercial use. Dishonest promoters can inflate the potential for unwitting investors, thus opening the door for abuse.

This week, state authorities shut down several telephone boiler-room operations in Orange, Los Angeles and San Diego counties for allegedly selling illegal investments. One major figure said to be behind the boiler room operations denied any wrongdoing, and State Corporations Commissioner Gary S. Mendoza said investigators would have to conduct a full review of seized materials before determining whether any criminal charges would be filed. But a word of caution is obviously in order. Mendoza said many investors were elderly people or others who lacked expertise to take such high risks. Investigators said the ventures took in as much as $30 million from more than 3,000 investors.

While it is good to see state authorities move aggressively to protect consumers in an industry plagued by unscrupulous promoters, consumers can be their own best advocates by investing cautiously.