A promissory note is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on-demand or at a specified future date.
A promissory note typically contains details on
Promissory notes are extremely risky and the investors must be aware that there is a possibility of suffering a total loss of their principal invested. There are very few promissory notes that comply with the Securities and Exchange Commission’s registration requirements under Regulation D and individual state registration requirements. There are fears in the market that promissory notes issued by some issuer could pave way for Ponzi schemes. In addition, investors are often lured into these investment schemes by false representations that the promissory notes are secured by real estate, US Treasuries, CDs, brokerage firms, or some other business assets.
Investors who feel they have been deceived into investing in promissory notes should take legal recourse and not just rely on making a complaint with the market regulators like Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA).
We at South Texas Securities Co. have the required expertise and experience in handling such litigations locally and internationally. We have helped our clients recover their lost money.