SEC Spotlights COVID-19 Scams in Its Tips for World Investor Week 2020
World Investor Week is an educational effort promoted by the U.S. Securities and Exchange Commission (SEC) and various other securities regulators throughout the United States and around the world. Each year, the SEC promotes a handful of key messages that are, “focus[ed] on long-term investing; understanding key financial concepts such as diversification, compounding and limiting fees and expenses; and asking questions to and conducting research on your financial professional.” While the SEC is promoting a number of general investor protection topics in relation to World Investor Week 2020, it has chosen to spotlight COVID-19 investor fraud scams in particular.
Our Securities Fraud Lawyers Discuss the SEC’s Tips Regarding COVID-19 Investor Fraud
We have touched on investor fraud scams related to the COVID-19 pandemic previously. We published an article on the topic in July; and, at that time, multiple brokers, traders and companies had already been charged with COVID-19-related investment fraud. Since then, multiple additional complaints have followed, and the prevalence of fraudulent investment scams related to the pandemic has forced the SEC to issue broad-scale warnings to individual investors.
In its Tips for World Investor Week 2020, the SEC warns of various types of fraud scams related to the COVID-19 crisis. In particular, the SEC cautions that investors should be wary of:
- “Internet promotions—including on social media—claiming that the products or services of specific publicly-traded companies can prevent, detect, or cure coronavirus, and that the stock of these companies will dramatically increase in value as a result.”
- “Unscrupulous promotors [targeting] benefits offered to businesses and individuals affected by the COVID-19 pandemic . . . [such as] benefits provided under the Coronavirus Aid, Relief, and Economic Security (CARES) Act [and encouraging] investors to take money from their 401(k)s or traditional IRAs, not for current emergency financial needs, but to buy investments.”
- “[P]romotions may take the form of so-called ‘research reports’ and make predictions of a specific ‘target price,’” in relation to companies allegedly involved in COVID-19 response efforts.
It is unfortunate that anyone would seek to take advantage of a worldwide crisis in order to profit at the expense of unsuspecting investors. But, as noted by the Financial Industry Regulatory Authority (FINRA), “crisis-related scams are nothing new.” Regulators and securities fraud lawyers are well aware of the risks investors face during uncertain times, and it is unfortunately that so many investors end up losing money under these circumstances.
Have You Lost Money in a COVID-19 Investment Fraud Scam?
If you have lost money in a COVID-19 investment fraud scam, what can you do? The most important thing you can do is to speak with a securities fraud lawyer right away. In many cases, it will be possible to recover fraudulent losses—if you act quickly to take advantage of the protections that are available. At Zamansky, LLC, we represent aggrieved investors nationwide, and our firm is fully operational during the COVID-19 crisis. To discuss your situation in confidence, schedule a free consultation today.
Schedule a Free Consultation at Zamansky, LLC
If you have lost money in a COVID-19 investment fraud scam, contact us to learn about the options that you may have available. To speak with one of our experienced securities fraud lawyers in confidence as soon as possible, call 212-742-1414 or request a free consultation online now.