What are the red flags you should look for when offered a promissory note investment?
Research the Opportunity. Check with the Nevada Securities Division or the SEC to determine if a promissory note is properly registered or exempt from registration. If you suspect your investment is a fraud, be sure to alert the Nevada Securities Division at 1-800-758-6440. Steer Clear of Nine-Month Promissory Notes. These short-term notes, which are sometimes exempt from securities registration, have been the source of most– but not all– of the fraudulent activity unearthed by securities regulators in the promissory note area. Since these notes are sometimes exempt from registration, you might not be entitled to some of the redress that the securities laws or regulators provide. Buy Only Form Licensed Securities Brokers. Insurance agents, financial planners, and investment advisers cannot sell securities, including promissory notes, without a securities license. You should make sure the broker selling the note is licensed by contacting the Nevada Securities Division before you invest.
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