You’ve been told to research an investment before sending anyone money, so finding the firm in a federal database might feel like strong evidence that it’s legitimate. Unfortunately, the Securities and Exchange Commission is warning investors that scammers have learned how to exploit that very instinct. On August 27, the SEC charged 38 entities that allegedly made false or unsubstantiated statements in regulatory filings to portray themselves as legitimate investment advisers.
The SEC says some of the entities were then marketed through websites that even displayed fake certificates supposedly showing SEC registration. The cases reveal an important SEC filing scam warning: finding a filing on an official government website does not necessarily mean the government has verified, approved, or endorsed the person behind it.
