Securities Law Blog

The SEC stopped the sale of fraudulent securities before anyone had the misfortune of investing with Illinois-based investment advisor Anthony Fields. Using various social media sites, including LinkedIn, Fields allegedly offered more than $500 billion in fictitious securities. According to the SEC, he used LinkedIn discussions to promote fictitious “bank guarantees” and “medium-term notes.”

Fields is the CEO and Chief Compliance Officer of his companies Anthony Fields & Associates (AFA) and Platinum Securities Brokers. According to the SEC’s complaint, Fields provided false and misleading information concerning AFA’s assets under management, clients, and operational history to the public through its website and SEC filings. Fields also allegedly failed to maintain required books and records, did not implement adequate compliance policies and procedures, and promoted himself as a broker-dealer while he was not registered with the SEC or FINRA.

To combat the exploitation of potential investors through social media sites, the SEC has begun to issue investor alerts. The alerts aim to help investors be better aware of fraudulent investment schemes that use social media, and provide tips for checking the backgrounds of advisors and brokers.