The Commission’s focus on retail investors has resulted in a series of cases frequently called offering frauds. In those cases, as repeatedly noted in this space, investors typically get lured to part with what is often their savings and/or retirement capital by unscrupulous persons. Frequently the schemers bate investors by waving around high-profile and popular terms tied to large potential profits such as “crypto currency” or “blockchain.” The article yesterday focused on one such fraud involving marijuana. As noted in connection with that post, investors typically lose most or all of their investment.
Today is different. The Commission announced it will return over $63 million to investors tied to a real estate investment offering fraud. While regulators such as the Commission strive to secure funds that can be returned to investors, typically by the time they arrive much of the investor capital has been dissipated. Those involved may be sanctioned but the chance of recovering much investor capital for the retail investors is small at best.
‘Enforcement 40’ for 2020
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