December 5, 2014
The Virginia State Corporation Commission Division of Securities and Retail Franchising recently issued an alert to investors warning of the risks of “pie in the sky”, “too good to be true” rates of returns on high yield investment programs. Follow this link to view the alert on the official Virginia SCC website.
The alert “High-Yield Investment Programs- Don’t Get Roped In” warns investors to be wary of current offerings appearing on the internet or on social media sites since they are often Ponzi schemes sold by unlicensed individuals.
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 , located in Boca Raton, FL, 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.
561 391 1900