OFFICIAL SEC REPORT CONFIRMS THAT INVESTMENT SEMINARS ARE FRAUGHT WITH FRAUD AND MISREPRESENTATIONS
Houston, Texas--As the saying goes, there is no "free lunch." A recent investigation by the SEC of 110 "free lunch" seminars found serious issues with this popular tactic used by investment advisors. Deficiency letters or letters of caution were sent to 78% of the investment firms investigated. In addition, 23% of the investment firms are under review for possible further investigation or action by a state, FINRA or SEC.
As part of its ongoing effort to protect senior investors, the SEC initiated its investigation of broker-dealers, investment advisors and other financial services firms that offer so-called "free lunch" sales seminars. The detailed report summarized their findings:
- Sponsors of "free lunch" offer attractive inducements
- Seniors are the Target
- Seminars designed to sell
- Misleading, exaggerated sales materials are often used
- Broker Firms fail to supervise these Seminars
- Bad Investment Advice is given leading to unsuitable investments
- Fraudulent practices including misrepresentations of risk/return, fictitious investments
"We have so many clients who have fallen victim to these sales tactics," said Debra Brewer Hayes of The Hayes Law Firm. "The saddest thing is that they target seniors, those who can least afford to lose their life savings. Just remember, a "free lunch" could cost you a bundle." The Hayes Law Firm encourages investors to report investment advisor fraud and to seek damages.
The Hayes Law focuses its practice entirely on representing investors who lost money in the stock market. For more information, please visit our Web site at www.dhayeslaw.com to obtain a full copy of the SEC Report. The Hayes Law Firm provides educational articles dealing with investor issues at www.aboutbrokerfraud.com.