SEC charges Illinois adviser for social media fraud

 

The Securities and Exchange Commission (SEC) today charged an Illinois-based investment adviser with offering to sell fictitious securities on LinkedIn, and issued two alerts in an agencywide effort to highlight the risks investors and advisory firms face when using social media.

 

The SEC’s Division of Enforcement alleges that Anthony Fields, of Lyons, Ill., offered more than $500 billion in fictitious securities through various social media websites. For example, he used LinkedIn discussions to promote fictitious “bank guarantees” and “medium-term notes.” The postings resulted in interest from multiple purported potential buyers.

 

According to the SEC’s order instituting administrative proceedings against Fields, he made multiple fraudulent offers through his two sole proprietorships: Anthony Fields & Associates (AFA) and Platinum Securities Brokers. Fields provided false and misleading information concerning AFA’s assets under management, clients, and operational history to the public through its website and in SEC filings. Fields also failed to maintain required books and records, did not implement adequate compliance policies and procedures, and held himself out to be a broker-dealer even though he was not registered with the SEC.

 

One of the SEC’s new alerts, Investment Adviser Use of Social Media, provides guidance for registered investment adviser firms in using social media to communicate with existing or potential clients, promote services, educate investors and recruit new employees.

 

The agency also issued Social Media and Investing: Avoiding Fraud, an alert prepared by the Office of Investor Education and Advocacy. The alert aims to help investors be better aware of fraudulent investment schemes that use social media, and provides tips for checking the backgrounds of advisers and brokers.

The Securities and Exchange Commission (SEC) today charged an Illinois-based investment adviser with offering to sell fictitious securities on LinkedIn, and issued two alerts in an agencywide effort to highlight the risks investors and advisory firms face when using social media.

 

The SEC’s Division of Enforcement alleges that Anthony Fields, of Lyons, Ill., offered more than $500 billion in fictitious securities through various social media websites. For example, he used LinkedIn discussions to promote fictitious “bank guarantees” and “medium-term notes.” The postings resulted in interest from multiple purported potential buyers.

 

According to the SEC’s order instituting administrative proceedings against Fields, he made multiple fraudulent offers through his two sole proprietorships: Anthony Fields & Associates (AFA) and Platinum Securities Brokers. Fields provided false and misleading information concerning AFA’s assets under management, clients, and operational history to the public through its website and in SEC filings. Fields also failed to maintain required books and records, did not implement adequate compliance policies and procedures, and held himself out to be a broker-dealer even though he was not registered with the SEC.

 

One of the SEC’s new alerts, Investment Adviser Use of Social Media, provides guidance for registered investment adviser firms in using social media to communicate with existing or potential clients, promote services, educate investors and recruit new employees.

 

The agency also issued Social Media and Investing: Avoiding Fraud, an alert prepared by the Office of Investor Education and Advocacy. The alert aims to help investors be better aware of fraudulent investment schemes that use social media, and provides tips for checking the backgrounds of advisers and brokers.