Difference between revisions of "Promissory note fraud"

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*'''The seller claims the promissory note is “risk-free,” “guaranteed,” or “insured.”''' All investments carry some level of risk, and investments with higher returns have a higher risk. Fraudsters will often claim that promissory notes are risk-free, guaranteed, or insured.
*'''The seller claims the promissory note is “risk-free,” “guaranteed,” or “insured.”''' All investments carry some level of risk, and investments with higher returns have a higher risk. Fraudsters will often claim that promissory notes are risk-free, guaranteed, or insured.
*'''The promissory note is not registered.''' Promissory notes with a term of over nine months must be registered with the SEC and the states in which they are being sold.
*'''The promissory note is not registered.''' Promissory notes with a term of over nine months must be registered with the SEC and the states in which they are being sold.
*'''The seller is not properly licensed.''' Insurance agents and brokers must have a securities license to sell promissory notes. You can look up whether the seller is properly licensed with the SEC.
*'''The seller is not properly licensed.''' Insurance agents and brokers must have a securities license to sell promissory notes. You can [https://brokercheck.finra.org/ look up] whether the seller is properly licensed with the SEC.


As detailed below, these red flags are consistently present in the SEC’s enforcement actions against promissory note frauds. For more information on promissory note scams, see FINRA’s Investor Alert.
As detailed below, these red flags are consistently present in the SEC’s enforcement actions against promissory note frauds. For more information on promissory note scams, see [https://www.finra.org/sites/default/files/InvestorDocument/p125867.pdf FINRA’s Investor Alert].


=='''Recent SEC Enforcement Actions Against Promissory Note Frauds'''==
=='''Recent SEC Enforcement Actions Against Promissory Note Frauds'''==