Taking on the problem of affinity fraud
Last Friday, the Department of Justice and the Consumer Protection Working Group held their annual summit on consumer protection. The summit highlighted the latest scams and what consumers can do to protect themselves. The Internet and social media have made it easier for scammers to contact and fool unsuspecting individuals with lottery scams, romance scams, unlawful […]
Sharpening your investment skills
Ever since the Internet became a medium for communication, fraudsters and scammers have tried to use it to steal money from overly-trusting individuals. When it comes to the sale of securities, the SEC warns that fraudsters commonly try to trick investors through online investment newsletters, bulletin boards, and pump and dump schemes. Fraudulent online offers of securities […]
Solutions for disclosure overload
On Friday at the “SEC Speaks” conference, Securities and Exchange Commissioner Troy Paredes observed that the information companies disclose to investors leads to “disclosure overload” that hampers the ability of investors to gauge the importance of the data. Commissioner Paredes went on to say “what we need is a top-to-bottom review of our disclosure regime.” At CrowdCheck, […]
You don’t have to be evil to commit securities fraud
Crowdfunding offers the ability for early-stage companies to seek investments from friends and neighbors in their social networks, fellow alumni, and others who have similar affinities. These connections may help reduce fraud that comes in the form of outright theft from investors. But selling securities creates potential for fraud liability in less sinister scenarios as […]