Fraud Check Tools for Investors

[Thomas Psipsikas]

Eliminating the risk of fraud in our business dealings with others is clearly something that we need to continually be very mindful of.  As investors (and particularly for passive investors) it is important to have a solid tool set to vet sponsors and other companies you consider working or investing with.  Background checks, BBB ratings and other online tools are invaluable, but the SEC also has a handy site to add to your tool belt.  With this SEC site, you can perform a quick search of a company to determine if there have been complaints filed with the SEC.  This includes entities that have impersonated genuine firms.

From the site: 

“The PAUSE Program lists entities that falsely claim to be registered, licensed, and/or located in the United States in their solicitation of investors. The PAUSE Program also lists entities that impersonate genuine U.S. registered securities firms as well as fictitious regulators, governmental agencies, or international organizations.”

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