Broken Promises: Promissory Note Fraud
Promissory notes are investments that typically involve a loan to a company made by an
investor in exchange for a fixed amount of periodic income. Although promissory notes can be appropriate
investments for many individuals, federal and state securities regulators are warning consumers that promissory
notes are increasingly being used by some as vehicles to defraud investors out of millions of dollars. In many cases,
investors are lured to these notes since they are billed as "risk free" and bonded by foreign insurance companies,
which are often fake. Local insurance agents who have previous relationships with the investors usually sell the
notes. Read
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