The SEC’s Office of Investor Education and Advocacy issued an Investor Alert Wednesday warning investors not to “trust someone with your investment money just because he or she claims to have impressive credentials or experience, or manages to create a ‘buzz of success.’” In order to attract unsuspecting investors and gain their trust, fraudsters may boast about credentials they do not have. They may fabricate, exaggerate, or hide facts about their backgrounds to portray themselves as successful professionals and to make you believe that the investments they offer are legitimate. Others may repeat these misrepresentations and contribute – perhaps unintentionally – to a fraudster’s false reputation of success and professional accomplishment.
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