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Promissory Notes and Fraud

When a potential investor is looking for a company to invest in, chances are some companies will advertise promissory notes. Under this structure, an investor will lend a company a certain principal fund in exchange for a promise from the company that the loan will be repaid, with interest and at fixed intervals.

Investors buy promissory notes because they sound simple, straightforward and safe. Unfortunately, some promissory notes may be fraudulent: some companies or their agents may not be legitimate, while some brokers take high risks operating outside the oversight of their firm with the hope of turning a handsome profit for themselves.

To avoid such fraudulent scams and schemes, ensure the company in question is legitimate and registered with the U.S. Securities and Exchange Commission (SEC). Be wary of unusually high promised rates of return or unusually high commissions that your broker may receive.

If you have already acquired a promissory note that now sounds like a fraudulent scam, please call The Law Offices of Jonathan W. Evans & Associates for an investigation and consultation. Because the law limits the amount of time after investing or discovering your losses that you may take legal action, it is important that you consult with experienced counsel as soon as possible.

News: Promissory Notes Can Be Less Than Promised

Categories: Securities Fraud
The Law Offices of Jonathan W. Evans & Associates - California Securities Fraud Attorney
Located at 12711 Ventura Boulevard, Suite #440 Studio City, CA 91604. View Map
Phone: (800) 699-1881 | Local Phone: (818) 760-9880.