NASAA Warns Investors about Scams Related to Third-Party Asset Recovery Companies

The North American Securities Administrators Association ("NASAA") warned investors to exercise caution if approached by third-party asset recovery companies. In an Informed Investor Advisory, NASAA warns against scams perpetrated by companies promising to help recoup lost investment funds for an upfront fee.

NASAA recommended that before an investor hires a third-party asset recovery company, the investor should consider the following (i) the amount of the fees; (ii) the scope of the so-called investigations; (iii) the availability of legal services; (iv) the company's claims of coordination with state, federal or provincial regulators; and (v) the company's possibly false promises of recovery.

The NASAA also advised that before making any decision regarding a third-party asset recovery company, the investor should do his or her homework and contract a state or provincial securities regulator.