98°F
weather icon Clear

Nevada official raises awareness of promissory note fraud

In recognition of the recent International Fraud Awareness Week, Nevada Secretary of State Barbara Cegavske is raising investor awareness of the risks associated with investments in promissory notes.

The Nevada Secretary of State Securities Division, like other state securities regulators, has identified promissory notes as a leading source of complaints to their agencies.

In fact, the North American Securities Administrators Association (NASAA), of which the Nevada Securities Division is a member, reported 210 investigations involving promissory notes, which led to 149 formal enforcement actions by state securities regulators last year.

“Promissory notes may be attractive to investors as they may offer high rates of return,” said Nevada Secretary of State Barbara Cegavske.

See more on pvtimes.com

“Investors need to understand that all investment carries some risk and that, even if the terms ‘insured’ or ‘guaranteed payment’ are utilized, risk exists.”

In addition, investors should be cautious of short-term promissory notes, such as those with durations of nine months or less, as these notes generally do not require federal or state securities registration. Such short-term notes have been the source of some of the fraudulent activity involving promissory notes.

The full advisory regarding promissory notes is available on the Secretary of State’s website here.

Contact the Nevada Securities Division at 702-486-2440 to see if an investment security is registered and if the person selling it is properly licensed.

Don't miss the big stories. Like us on Facebook.
THE LATEST
VFW Food Bank needs donations — how you can help

The Veterans of Foreign Wars Post #10054 is a major hub of activity in the Pahrump Valley, much of which is focused solely on supporting former military members in the community. The organization operates a variety of valuable programs, one of which is its Veterans Food Bank.

Beatty student takes 2nd in state VFW art contest

Juan Alvarez, of Amargosa Valley, a student in Stephen Witten’s drawing class at Beatty High, created his drawing of the face of a combat soldier using charcoal and working without an outline.

Here’s how Pahrump marked Purple Heart Day

National Purple Heart Day was observed on Sunday, Aug. 7 and area residents were able to mark the occasion by attending the valley’s 6th annual Purple Heart Day Sundown Ceremony.

New Sons of the American Legion squadron being established in Pahrump

The Pahrump Valley’s various veterans’ organizations are the backbone of many local charitable and patriotic activities and one is now expanding its reach by starting a whole new squadron.

Nevada’s casino industry donates to both gubernatorial candidates

The state’s casino industry has donated money to both Democratic Gov. Steve Sisolak and his Republican challenger Joe Lombardo, although some have preferred one over the other.