SEC Regional Director Describes Affinity Fraud
Richard Best, regional director of the Securities and Exchange Commission's Salt Lake office, describes taking precautions against affinity fraud.
Video Transcript
Understand what you’re investing in. It’s just like any other product.
If you’re going to buy something, understand what you’re buying and make sure that if you have a question, if you don’t understand it, or if something just doesn’t seem right, feel free to pick up the phone and call your local regulator and ask them, Hey, listen, I have this investment. I’ve been told about this opportunity. What can you tell me about it?
And then also, what can you tell me about this individual who’s asking me to invest? Even if that regulator doesn’t cover that particular investment, very likely they are going to point you in the right direction so you can find out more information before you invest.
Be an informed consumer, that is my message.
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