The Securities and Exchange Commission today announced that it updated its list of unregistered entities that use misleading information to solicit primarily non-U.S. investors, adding 14 soliciting entities, two impersonators of genuine firms, and four bogus regulators.
The SEC’s list of soliciting entities that have been the subject of investor complaints, known as the Public Alert: Unregistered Soliciting Entities (PAUSE) 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. 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.
In addition to alerting investors to firms falsely claiming to be registered, the PAUSE list flags firms that are impersonating registered securities firms and entities that falsely claim to be government regulators, agencies or affiliates. 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.
How to protect yourself:
A basic understanding of how scam artists work can help you avoid fraud and protect your money. Learning how to invest wisely can help you reach your financial goals. Here are some ways to help 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.
To see more information on how fraudsters lure victims into scams see our investor alerts.
