SEC Updates List of Firms Using Inaccurate Information to Solicit Investors
The SEC updated its PAUSE list to warn investors about 43 new entities, including unregistered firms, impersonators, and bogus regulators using misleading information to solicit investors.
The SEC added 35 unregistered soliciting entities, four firm impersonators, and four bogus regulators to its PAUSE list. These entities are flagged for providing inaccurate information regarding their registration, location, or affiliation. While no specific charges or dollar amounts were cited, the update highlights potential violations of U.S. securities laws.
The Securities and Exchange Commission has updated its Public Alert: Unregistered Soliciting Entities (PAUSE) list to include 35 unregistered soliciting entities, four impersonators of genuine firms, and four bogus regulators. These entities use misleading information regarding their affiliation, location, or registration to target primarily non-U.S. investors. The SEC notes that such firms often falsely claim to be government agencies or mimic registered securities firms to gain trust. While inclusion on the list does not constitute a formal finding of legal violations, it serves as a critical warning to help investors avoid fraud. The update was coordinated by the SEC’s Office of Market Intelligence, Office of Investor Education and Advocacy, and Office of International Affairs. Investors are encouraged to use Investor.gov to verify registrations and remain vigilant against social media and COVID-19-related investment scams.
Exhibits & Attached Documents (1)
Extracted insights
- person bogus regulators
- person firms providing inaccurate information
- person government agencies
- person pause list
- agency sec staff
- agency Securities and Exchange Commission
- SEC Updated List of Unregistered Entities
- SEC Added 35 Soliciting Entities, 4 Impersonators, and 4 Bogus Regulators
- SEC Staff Found Firms Providing Inaccurate Information
- Firms Must Register with SEC
- PAUSE List Flags Impersonators of Registered Securities Firms
- Bogus Regulators Claim to be Government Agencies
- Office of Market Intelligence Updates PAUSE List
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 35 soliciting entities, four 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 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. 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. How to protect yourself: Social Media and Investment Fraud – Investor Alert Watch Out for Fake COVID-19 Claims When Investing -- Investor Alert Beware of Communications Falsely Appearing to Come from the SEC – Investor Alert Visit Investor.gov for tips on investing wisely and avoiding fraud.
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 35 soliciting entities, four 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 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. 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. How to protect yourself: Social Media and Investment Fraud – Investor Alert Watch Out for Fake COVID-19 Claims When Investing -- Investor Alert Beware of Communications Falsely Appearing to Come from the SEC – Investor Alert Visit Investor.gov for tips on investing wisely and avoiding fraud.