Sept. 2, 2011
Promissory notes are a form of debt—similar to loans or IOUs—that companies sometimes use to raise money. They are investments that typically involve investors loaning money to a company in exchange for a fixed amount of periodic income. Although promissory notes can be appropriate investments for many individuals, some fraudsters have begun increasingly to use promissory notes as vehicles to defraud investors—especially the elderly—out of millions of dollars.
For tips on how to avoid promissory note scams, read our online publication entitled Broken Promises: Promissory Note Fraud.
Learn More About Promissory Notes
For more information, visit the website of the Financial Industry Regulatory Authority (FINRA), where you can read an alert on Promissory Notes Can Be Less Than Promised.