The Securities and Exchange Commission announced recently that it has updated its list of unregistered firms that are using misleading or inaccurate information to solicit primarily non-US investors.
The SEC said it is adding 14 soliciting entities, two impersonators of genuine firms, and four bogus regulators 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 soliciting entities that are on the PAUSE list have been the subject of investor complaints.
The list enables investors to better inform themselves and avoid being victims of fraud. The latest additions are firms that SEC staff found were providing inaccurate information about their affiliation, location, or registration.
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.
Inclusion on the PAUSE list does not mean the SEC has found violations of U.S. federal securities laws or made a judgment about the merits of any securities being offered.
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.
The SEC stressed the importance to investors of understanding how scam artists operate, in order to protect their money and avoid fraud. The commission listed some ways to avoid being scammed:
–Be aware before you share your contact information in response to an investment promotion.
–Learn what you can do to avoid investment fraud including red flags to watch for and where to go for help.
–Learn how to protect yourself online and how to protect your social media accounts.
–Learn about the different types of investment fraud, including those found online and in social media.
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.
