SEC Warning of Investment Scam Involving Government Impersonators

by Wall Street Fraud on March 6, 2012

Philadelphia securities fraud lawyerThe Securities and Exchange Commission is warning investors about a growing investment scam involving government impersonators. As detailed in the alert, fraudsters posing as SEC employees are calling potential victims and purporting to offer them a large sum of money (in some cases, the amount of $450,000 is used) in return for depositing a smaller amount (for example, $1,500) into a specified account.

While some of these solicitations may use the name of a legitimate company and refer prospective investors to an operating website, it is important to understand that this is a scam. The SEC does not endorse investment offers, assist in the purchase or sale of securities, or participate in money transfers.

In addition, SEC staff will not contact individuals by telephone or email for purposes of:

  • seeking assistance with a fund transfer;
  • forwarding investment offers to them;
  • advising individuals that they own certain securities;
  • telling investors that they are eligible to receive disbursements from an investor claims fund or class action settlement; or
  • offering grants or other financial assistance (especially for an upfront fee).

Given the recent surge in complaints regarding this type of investment scam, the SEC advises investors who receive a telephone call or email from somebody claiming to be from the SEC (or another government agency) to always verify the person’s identity.

Specifically, you can use the SEC’s personnel locator, (202) 551-6000, to verify whether the caller is an SEC staff member and to speak with him or her directly. You also can ask whether the person calling you is employed by the SEC and request to speak with the staff member’s supervisor if there is such an employee.

If you have been the victim of investment fraud or negligence, we may be able to help you recover your losses. Contact us today at 215-839-3953 for a free consultation.

At Wall Street Fraud, we are dedicated to offering assistance to those who have been hurt by improper corporate or investment practices.

If you have been the victim of stock brokerage fraud, securities fraud, mutual fund fraud, stockbroker fraud, annuities fraud, or any other type of investment fraud, please contact us today for a free case evaluation. Our talented and aggressive legal and professional staff is eager to help you recover your losses.

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