A complaint against a number of bond brokers has been made by the Securities and Exchange Commission (SEC). The SEC alleges that these firms are operating in violation of consumer protection laws and have used high-pressure sales tactics. These techniques include claiming upcoming earnings announcements from public companies and expected public disclosures of economic news. Another example of a Bonds Brokers Scam is the practice of charging upfront fees for services.
The SEC claims that many brokers have engaged in such practices. These companies have a boiler-room-like environment where employees falsely claim to be brokers. It may even involve selling shares of a company that does not exist or buying them for a price significantly higher than the market value. These are all indicators of a Bonds Brokers Scam. A person should be cautious about making investment decisions based on these advertisements.
In addition to misleading the SEC, many Bonds Brokers Scams are also illegal. This type of broker-dealer will often fail to disclose certain information, like tax and accounting documents. Depending on the circumstances of the particular case, a victim can file a case claiming that a broker-dealer has acted in fraudulent fashion. The SSEK Law Firm is a securities law firm that offers free consultations to investors. They have offices throughout the country and work with clients nationwide.