SEC Adds Miami, FL Company to PAUSE Database; Entity Accused of Soliciting Investors Using Misleading Information

On October 31st, 2018, the Securities and Exchange Commission (SEC) announced the addition of 16 unregistered companies and investment entities the official Unregistered Soliciting Entities (PAUSE) list. This database is provided free to the public, as a tool for investors to help them protect themselves from fraud. Companies and investment entities can be added to the list if the SEC believes that they are using misleading information to solicit primarily non-U.S. investors.

Among the companies recently added to the PAUSE list is an investment company called CC Ltd. This investment entity is registered to an office in Miami, Florida. The company presents itself as a transfer firm, using its services to offer both stock transfers and international real estate closings. However, the SEC added the company to the PAUSE list based on its belief that it has solicited investors with misleading information. Here, our top-rated Miami securities fraud attorneys explain some of the most important things investors need to know about the SEC PAUSE list.

Why are Companies and Investment Entities Added to the PAUSE List? 

Under United States securities law, companies and entities that solicit investment are typically required to register with the Securities and Exchange Commission. Registered companies must meet certain general financial standards, disclosure requirements, and recordkeeping rules. Only when certain conditions are met can unregistered securities be offered to a select set of qualified investors. The PAUSE list is made up of unregistered entities that the SEC believes are using misleading information to solicit money from investors and who have been subject to at least one investor complaint.

Investors Have a Right to Accurate Information  

To make a wise investment decision, you need to have full and accurate information regarding any stock, bond, security, or financial product in question. If brokers or other solicitors fail to disclose, or if they actively conceal, material information, an investor is denied the chance to make an informed decision. Investors should be able to get access to:

• The true location of the firm;
• The firm’s affiliations;
• Its registration status;
• A reliable accounting of assets and liabilities;
• In depth information related to the securities offering; and
• Background information about the entity’s executives.

With unregistered securities, it can be difficult, if not impossible, for investors to get access to the full information that they need. Unfortunately, for this and other reasons, unregistered securities are a major conduit of fraud. If you sustained serious losses in unregistered securities, you may have been the victim of investment fraud or broker negligence. At this time, you should consult with an experienced securities fraud attorney who can review your claim and take action to protect your rights.

Speak to a Miami, FL Securities Fraud Lawyer Today

At Carlson & Associates, P.A., our investment fraud lawyers have extensive experience representing investors. If you sustained illegitimate investment losses in unregistered securities, we can help you fight for the fair financial compensation you deserve. For a fully private review of your case, please reach out to our Miami law office today.

Resources:

sec.gov/news/press-release/2018-247

sec.gov/investor/pr-oiepauselistupdates-103118.pdf