SEC investigates suspicious Harvey relief

The Securities and Exchange Commission (SEC) recently suspended trading in a company as questions about potential Hurricane Harvey relief fraud are being investigated. This move comes after a recent press release was issued by Texas-based Grupo Resilient International which “claimed that the company added a “FEMA-approved contractor” to the board of its subsidiary and was deploying workers and preparing to deploy a network of mobile broadband trailers to assist in relief efforts,” according to the SEC announcement. SEC questions the accuracy of the statements made in the press release. “Earlier this month, the SEC issued an alert that warned investors to be vigilant for investment scams related to Hurricanes Harvey and Irma, noting that scam artists often exploit the latest crisis in the news cycle to lure investors into supposedly promising investment opportunities.”