The Securities and Exchange Commission has intensified its crackdown on illegal investment and lending activities, warning the public against entities and individuals posing as legitimate firms to defraud investors and borrowers.
The regulator recently cautioned the public against individuals or groups soliciting investments for “Xelora,” which the SEC said is neither registered as a corporation nor as a partnership, which means it lacks the secondary license required to offer, sell, or distribute securities to the public.
The SEC also flagged scammers posing as representatives of Aurora Securities Inc., allegedly using the company’s name, logo, and identities outfits personnel to solicit investments online. The advisory said the fraudsters send deceptive messages through online messaging applications. They claim that recipients supposedly maintain investment portfolios with the company and need to settle tax obligations before they can withdraw their finds.
The regulator said the scheme resembles an “advance-fee scam,” wherein victims are persuaded to pay an upfront amount in exchange for a promised larger sum. “Upon payment, the scammer will either ask the victim to pay additional fees or simply disappear,” the SEC warned.
Advisories were also likewise issued against entities using the name of Value Quest Finance Corp. without authorization to conduct online lending activities. It also warned of the identity and registration details of Glimms Credit Inc. to operate unauthorized lending businesses.
The regulator reiterated that it remains committed to curbing illegal investment-taking activities through enforcement actions, advisories, and financial literacy campaigns. It urged the public to remain vigilant and verify first whether companies offering investments or loans are properly registered and licensed before engaging in any transaction.
Illegal investment and lending scams have been around since the dawn of civilization, and as humans have evolved and harnessed advances in technology, so have the scammers. These days, as the internet has empowered both the good guys and bad guys alike, the best way to protect ourselves is to be as well informed as possible so we can identify the scams, as well as continually build up our defenses. A government that is proactive in protecting its people and going after the scammers also helps.*
