Today, the SEC also issued an alert to investors to “be on the lookout for investment scams related to Hurricane Sandy.” The agency stated that disasters such as hurricanes, floods, and oil spills “often give rise to investment scams. These scams can take many forms, including promoters touting companies purportedly involved in cleanup efforts, trading programs that falsely guarantee high returns, and classic Ponzi schemes where new investors’ money is used to pay money promised to earlier investors.”
via SEC Warns Investors to Be on Lookout for Hurricane Sandy Scams – Compliance Week
