Have you, a family member, a client or a friend ever been approached to make an investment where you were not sure if the person soliciting you to invest was trustworthy? If so, you are not alone. In fact, in response to the increase in fraudulent investment schemes, the SEC has issued two investor alerts within the space of two weeks during June. These investor alerts, and other information available from the SEC and FINRA (the Financial Industry Regulatory Authority) provide guidance to help you avoid investing in fraudulent investment scams through unscrupulous individuals.
The first alert highlights certain tips to spot fraudsters trying to lure unsuspecting people into fraudulent investment schemes. Often these fraudsters are not properly licensed to sell securities or to provide investment advice but exaggerate or even lie about their credentials. They may lie about or embellish their education, employment, licensure, honors and expertise. They may appear to be genuine and trustworthy, even appearing on investment oriented television shows and using social media to create an appearance of legitimacy.
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