PORTLAND – The state Office of Securities is warning Mainers about possible scams involving investments called “charitable gift annuities.”

Christine Bruenn, the state’s securities administrator, said many charities use the annuities to raise money. The annuities allow people to give stock shares to charity, get a tax deduction for the donation and still receive interest from the stock.

But, Bruenn said, some organizations have taken donations and illegally run off with the money.

Maine officials became concerned recently when a Tennessee-based charity, the New Life Corp. of America, offered charitable gift annuities through unlicensed financial professionals who expected 6 percent commissions. In Maine, any third party selling the annuities for commissions must hold a securities license.

Bruenn said her staff was unable to get direct answers from the charity, and her office issued a cease-and-desist order for it to stop soliciting in Maine.

Mark Absher, general counsel for New Life Corp. of America, said he “anticipated getting all issues resolved with Maine and our organization.”

“We really believe there’s going to be a favorable resolution,” Absher said.

Bruenn said people taken in by the scams could lose all their money and still be liable to the Internal Revenue Service for taxes that the investors thought were covered through deductions.

Bruenn said a national securities association rated charitable annuity scams as one of the nation’s top 10 frauds. In one case, she said, 430 investors lost an average of $133,000 each.

She said charitable annuities are particularly appealing to retirees who benefit from the tax break and live off the interest.

“It’s a wonderful thing for legitimate charities,” she said. “Our worry is that folks may use this legitimate mechanism to scam Maine citizens.”