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SEC updates list of firms using misleading information to solicit investors

On Behalf of | Mar 23, 2023 | Regulatory Investigations

The Securities and Exchange Commission announced its latest step aimed at protecting investors by issuing an update to its list of Public Alert: Unregistered Soliciting Entities (PAUSE)

The PAUSE Program lists firms that falsely claimed to be registered, licensed, and/or located in the United States in their solicitation of investors, as well as entities that impersonate genuine U.S. registered securities firms, or falsely claim to be a regulator, governmental agency, or international organization that do not exist.

The SEC said it had added 96 soliciting entities, three impersonators of genuine firms, and five bogus regulators to the PAUSE list, comprised of entities that have been the subject of investor complaints. The SEC said the compilation of the list allows investors to better inform themselves and avoid becoming victims of fraud.

“This latest update to the PAUSE list reflects the Commission’s ongoing effort to protect retail investors across all investment products – including crypto asset securities,” said Jose M. Rodriguez, Chief of the SEC’s Office of Market Intelligence. “The PAUSE program continues to provide valuable information to aid investors in making informed investment decisions.”

Under U.S. securities laws, firms that solicit investors generally are required to register with the SEC and meet minimum financial standards and disclosure, reporting, and recordkeeping requirements. The SEC said it updated the list after its staff found more firms that were providing inaccurate or misleading information about their affiliation, location or registration.

Information regarding public alerts issued by the SEC and Commodity Futures Trading Commission can be found at:

The attorneys at Lewitas Hyman were formerly senior attorneys in the SEC’s Division of Enforcement. We have also represented clients in regulatory matters while working at Morgan Stanley and in private practice at some of the world’s largest law firms. Therefore, we understand the complexities that come with being the subject of a regulatory inquiry, and we have the experience to guide and advise you through any type of regulatory investigation. If you are the subject of a regulatory proceeding, contact Lewitas Hyman at (888) 655-6002 or through our online contact form for a free consultation.