On Monday the Securities and Exchange Commission’s Office of Investor Education and Advocacy issued an Investor Alert listing 10 red flags that could indicate that an unregistered offering is fraudulent, Financial Advisor Magazine reports.
The Jumpstart Our Business Startups Act, or JOBS Act, which was signed into law by President Barack Obama in April 2012, has made it easier to invest in unregistered start-ups and other small companies that are not required to adhere to the usual disclosures and SEC requirements. However, the SEC warns, these lightly regulated offerings can leave advisers and their clients open to fraud, Financial Advisor Magazine reports.
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