SEC Warns Investors About False Broker Claims
The SEC’s Office of Investor Education and Advocacy cautions investors to research the credentials of financial professionals before trusting that person with investment money. This precautionary investigation will serve as a safeguard against people who may lie about their backgrounds in an effort to gain more professional trust from investors with their finances. This public warning reads, “Do not trust someone with your investment money just because he or she claim to have impressive credentials or experience, or manages to create a ‘buzz of success.’” It was issued after the SEC brought several recent cases involving people falsifying their backgrounds to be viewed as more credible. Julie Riewe, Co-Chief of the SEC Enforcement Division’s Asset Management Unit, stated, “Advisers looking to raise funds cannot lie about their backgrounds to lull investors into a false sense of security about their purported expertise or the profitability of a potential investment.” Financial professional Michael G. Thomas of Pennsylvania advertised that he was named [...]