Investor Lawyers Blog
It is crucial that investors who believe they have been the victim of securities fraud contact a legitimate investment attorney. Many investors learned this lesson the hard way recently when they were duped by a “State Securities Commission” website copycat. In November 2011, the North American Securities Administrators Association (NASAA) announced that the “State Securities Commission” website operator must cease operations because it misappropriated NASAA content. Furthermore, it appeared that the website was created as a way to dupe investors.
According to NASAA President and Assistant Director of the Nebraska Department of Banking and Finance Bureau of Securities, Jack Herstein, “Several fake regulator websites have been brought to the attention of state and federal securities regulators in recent years. Many of these sites purport to offer relief to investors. In reality, they are fronts for con artists posing as regulators.”
Because the site contains NASAA investor alerts and news releases that have been slightly modified, Herstein says that the NASAA is concerned its reputation for investor protection is being used by con artists to lure investors into a scheme. Furthermore, the site makes claims of reputable associations that are misleading at best, such as the statement made by the site that it was charted by Congress. According to Herstein, “This information is patently false. Cons will go to great lengths to make themselves appear legitimate.”