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The Massachusetts Securities Division (the Division) warns that the average investor is overwhelmed by the COVID-19 pandemic. The Division points to several COVID-19-related items such as physical isolation, job uncertainty and financial strain as elements that may make the average investor more susceptible to fraud, especially with regard to retirement savings. The notice from the Division warns that some schemes may promote companies that claim to be able to prevent, identify or cure COVID-19. Additionally, many schemes are intended to “exploit investor panic” during the COVID-19 pandemic. The Division identifies specific instances of which investors should be aware, including:
- Claims made by companies related to the prevention, detection or cure of COVID-19;
- Claims of high returns with little to no investment risk;
- Claims of high returns in return for a small upfront investment; and
- Any investment pitch creating a false sense of urgency…
