The SEC has updated the Public Alert: Unregistered Soliciting Entities (PAUSE) list. This list, maintained by the Commission, contains unregistered entities and firms that use misleading information to solicit investors. Sixteen soliciting entities, four impersonators of genuine firms, and eight bogus regulators have been added to the list. Many of the targets of these firms are non-US investors, and all investors should be cautious in dealing with such entities. In addition, the SEC made technical updates to its database to improve the ability of retail investors to search for and obtain information about unregistered entities. This update consolidates active and archived lists.
Wednesday, November 07. 2018
SEC Updates List of Firms Using Inaccurate Information to Solicit Investors
The PAUSE list allows investors to better inform themselves and protect themselves from being victims of fraud. The latest additions (available here) are firms the SEC staff has found to be providing inaccurate information about their affiliation, location, or registration. Firms that solicit investors generally are required by US law to register with the SEC and meet minimum financial standards, as well as disclosure, reporting, and recordkeeping requirements. The PAUSE list also flags individuals or entities who are impersonating registered securities firms and regulators who falsely claim to be government agencies or affiliates. Inclusion on the PAUSE list does not mean the SEC has found violations of US federal securities laws or made a judgment about the merits of any securities being offered.
Investors are advised to protect themselves by studying the PAUSE list, as well as checking the background of anyone offering an investment. In addition, investors can learn about the scams targeting them, including high yield investment programs, advance fee fraud, and microcap fraud, through the various tools and resources offered by the SEC on Investor.gov.
Sources:
SEC Updates List of Firms Using Inaccurate Information to Solicit Investors (www.sec.gov)
Public Alert: Unregistered Soliciting Entities (PAUSE) (www.sec.gov)
Investor.gov (www.sec.gov)
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