DFPI Cautions on Apps Offering Unqualified Securities

The California Department of Financial Protection and Innovation (DFPI) has issued desist and refrain orders for violations of California securities laws against Alluo and Star Network, which both unlawfully offered investments to the general public through smartphone apps available for download from app stores.

A new consumer brochure describing the dangers of unregistered securities offered through smartphone apps is now posted to the DFPI website. The brochure gives advice to consumers on how to protect themselves from unlawful investment activity and what to do if they get involved with such apps.

The orders require these entities to desist and refrain from the further offer and sale of securities unless and until qualification requirements of the law have been met.

The DFPI urges consumers to exercise extreme caution before responding to any solicitation offering investment or financial services. To check whether an investment or financial service provider is properly licensed in California, or to submit a complaint, consumers should go to the DFPI website at https://dfpi.ca.gov/consumers/  or call 1-866-275-2677.