New online methods to fight fraud
Date: September 26, 2007Source: chron.com
U.S. securities regulators are studying a new method to fight fraud through online postings of investor complaints.
The Securities and Exchange Commission announced the online initiative Wednesday and said it would seek public comment for 30 days.
The SEC said it hopes the approach will give retail investors a new tool to avoid scams and questionable investment solicitations by high-pressure "boiler room" operations that aren't registered with federal regulators.
SEC Chairman Christopher Cox said the initiative, called Public Alert: Unregistered Soliciting Entities, or PAUSE, will post information on the SEC's Web site about solicitations that have generated investor complaints, including "fictitious government agencies and international organizations." It also will warn of offers by scammers posing as SEC-registered firms, using similar names or addresses, and those who try to hide their identity behind official-sounding names.
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