December 9, 2014- Pierre, South Dakota
The South Dakota Division of Securities, Department of Labor and Regulation warns of high-yield investment programs (HYIP) commonly found on internet and social media posts.
The most notable characteristic of these schemes is the promise of very high returns at little to no risk to the investor.
Warning signs are:
- The promise of high daily, weekly or monthly returns.
- An offer from the company to pay “referral fees” to investors for bringing in additional investors.
- The use of social media to spread the word and praise the program.
- The promoter provides very few details about who runs the company and how profits are generated.
- The promoter may require that the investor open an e-currency account to invest. E-currency accounts are not licensed as a money transmitter.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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