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SEC updates list of firms using inaccurate or misleading information to solicit investors

On Behalf of | Dec 6, 2021 | Financial News

The Securities and Exchange Commission announced Wednesday that it had updated its list of firms that are using misleading or inaccurate information to solicit investors, according to ThinkAdvisor.

The SEC said it added 82 soliciting entities, eight impersonators of genuine firms, (so-called ‘spoofer’ firms), and one bogus regulator. The list is known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list. It is aimed at giving investors the information they need to avoid being defrauded by firms that misrepresent themselves.

“This latest update to the PAUSE list reflects the Commission’s ongoing effort to protect retail investors,” said Jose M. Rodriguez, Deputy Chief of the SEC’s Office of Market Intelligence. “The PAUSE list provides valuable information to aid investors in making informed investment decisions.”

The SEC said the additions to the list were entities that were found to be providing inaccurate information about their affiliation, location, or registration. They have been using this information to solicit primarily non-U.S. investors. Among the eight ‘spoofer’ firms that were added to the list is Access Financial Investment in Chicago, which the commission said is impersonating Access Financial Group Inc.

The PAUSE list also includes those who impersonate registered securities firms, along with fictitious regulators who falsely claim to be government agencies or affiliates. The list is periodically updated by the SEC’s Office of Market Intelligence.

U.S. securities laws require firms that solicit investors to register with the SEC and meet minimum financial standards and disclosure, reporting, and recordkeeping requirements.

Here is the SEC’s complete list of entities that falsely claim to be registered, licensed, and/or located in the United States in their solicitation of investors.

Investors incur losses when companies, corporate insiders, hedge funds, private placement issuers, financial advisors and other financial professionals make false or misleading statements or fail to disclose material information. The attorneys at Lewitas Hyman have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact us at (888) 655 6002 or through our online contact form for a no-cost evaluation of your matter.