The SEC recently issued an investor alert in order “to warn investors of potential fraud they may encounter at investment seminars that purport to teach investors trading strategies that will allow them quickly and easily to make money trading securities.”
The SEC is particularly concerned “that some trading seminar promoters may use misleading or untrue statements to lull investors into purchasing expensive products such as trading software or classes.”
The SEC identified 4 “Signs of Trading Seminar Fraud” that investors should be aware of.
– “Claims that trading strategies are ‘easy’ or ‘simple.’”
– “Be mindful of ‘guaranteed’ returns.”
– “High-pressure sales tactics.”
– “Sounds too good to be true.”
The SEC also identifies several ways “to avoid trading seminar fraud.”
– “Investigate before the seminar.”
– “Ask Questions.”
– “Be skeptical of claims of past trading success.”
The full text of the SEC investment seminar alert can be found at http://www.sec.gov/investor/alerts/tradingseminars.htm
The SEC “[provides] this information as a service to investors. It is neither a legal interpretation nor a statement of SEC policy.” They further state that “If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.”
If you do have questions related to securities rules and regulations and would like to speak to a securities attorney you may call our Chicago office at 312/238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.