Promissory notes are a big problem and there’s been hundreds of scams across the United States over the past ten years. What happens is license brokers who are looking for that extra dollar or that extra commission or that extra money for whatever reason will sell promissory notes. These are documents purporting to generate high levels of percentage income but often times they are illicit they’re not registered. They’re not properly documented and they’re actually selling them without the permission of their supervisors. Promissory notes are really for the most part not legit and they’re certainly not for the average investor. These state regulators have tried their best to cut down on these and there’s been a lot of public outreach and education about private placements as well as a promissory note at issue. The public is getting educated but if it sounds too good to be true it probably is. These products these promissory notes are generally sold unsophisticated investors people who don’t have a lot of knowledge of the financial markets and oftentimes they are part and partial of what’s known as Ponzi schemes.
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