SEC Investor Alert Warns of Fake Correspondence

The SEC Office of Investor Education and Advocacy issued an alert to warn investors about fraudulent solicitations using correspondence which appears to be from SEC staff and Commissioners. The alert stated that the SEC does not assist with the purchase or sale of securities or participate in fund transfers, and cautioned investors to be wary of letters which appear to come from the SEC. In particular, the SEC urged investors to be on alert for letters which:

• advise on the ownership of certain securities;
• verify the beneficiary of certain securities;
• seek or offer assistance to transfer funds;
• recognize individuals or firms as agents;
• suggest that an investment is legitimate or encourage action on an investment; or
• offer grants or other financial assistance (especially for an upfront fee).

See: SEC Investor Alert.