SEC Updates List of Firms Using Inaccurate Information to Solicit Investors
The Securities and Exchange Commission has announced that it updated its list of unregistered entities that use misleading information to solicit primarily non-U.S. investors, adding 23 soliciting entities, eight impersonators of genuine firms, and seven 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 (https://www.sec.gov/enforce/public-alerts), enables investors to better inform themselves and avoid being a victim 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.
“This latest update to the PAUSE list is part of our ongoing proactive effort to use the information and intelligence we receive to protect main street investors,” said Jennifer Diamantis, Chief of the SEC’s Office of Market Intelligence. “As we experience an uptick in tips, complaints, and referrals during these unprecedented times, we encourage investors to consult the PAUSE list and other SEC resources that can help them avoid becoming victims of scams and to be on the lookout for red flags or warning signs of potential fraud.”
In addition to alerting investors to firms falsely claiming to be registered, the PAUSE list flags those impersonating registered securities firms and bogus regulators who falsely claim to be government 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.
The team of investment fraud lawyers at Starr Austen & Miller LLP fights for the protection of investors and handles cases involving securities arbitration misrepresentation, overconcentration, broker fraud, negligence and breach of trust.