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The Other SEC

The SEC is known to Lexington fans of the University of Kentucky as the most competitive conference in college sports. The SEC is also the Securities and Exchange Commission, the most dominant player in the investment world.

One of the jobs of the federal agency is to try to help consumers avoid securities fraud schemes. Much of the advice it offers is common sense stuff, such as "research the company before you invest." Unfortunately, some scammers are fully prepared for cursory research and often have dazzling websites that appear to be the public face of a legitimate business.


That's why it makes sense to do more than look at the website they want you to look at; the SEC urges investors to look up companies on the SEC website to check out its financial statements.

The agency also urges you to check the background of the person urging you to buy. Are they licensed to sell in Kentucky? Have they had prior problems with regulators or investors?

Also, try to heed the old adage that if something sounds too good to be true, it probably is. When a company or a broker or adviser "guarantees" returns, know that the guarantee is a false one. Every investment carries risk. If you are promised high yields, know that the risk factor is also high.

For those who have been victims of securities fraud, time is of the essence. Speaking with an attorney experienced in protecting rights and assets is the first step in seeking a remedy or recovering your funds. You can speak with a Lexington securities fraud lawyer to learn more about your options.

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