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SEC updates list of firms using misleading information to solicit investors

On Behalf of | Sep 18, 2023 | Regulatory Investigations

The Securities and Exchange Commission announced last week that it has updated its list of firms that are using misleading or inaccurate information to solicit primarily non-US investors.

The SEC said it is adding 29 soliciting entities, three impersonators of genuine firms, and one bogus regulator 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 the compilation of the list is aimed at helping investors better inform themselves and avoid becoming victims of fraud.

“The PAUSE list is a valuable tool for retail investors to use when making their investment decisions,” said Jose M. Rodriguez, Chief of the SEC’s Office of Market Intelligence. “Investors should be aware that fraudsters often mimic genuine firms by using imposter websites.”

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.

The PAUSE list is periodically updated by the SEC’s Office of Market Intelligence, in coordination with the Office of Investor Education and Advocacy and the Office of International Affairs.

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

In its announcement, the SEC also warned of fraudsters impersonating organizations or individuals to lure victims into scams, and provided details on various impersonation schemes that investors should be aware of.

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.