ADA News

The U.S. Securities and Exchange Commission is asking dentists to come forward if they've been solicited to invest in a fine wines company, which they say is possibly a scam.

The SEC is investigating an investment program allegedly targeting American dentists and involving the sales of interests in fine wines. The offshore company apparently describes the opportunity as more lucrative than investments in various stocks and guarantees the wine investment will grow in value as the underlying wine ages and becomes more rare.

Dentists who express interest in the program are mailed promotional materials and, after making an initial investment, the company sends dentists a contract and invoice seeking payment of a much larger amount.

The contract and invoice describe the initial investment as just a down payment and indicate that, if additional payment is not received, the investor will forfeit the original payment and lose the opportunity to complete the investment. If the dentist makes the payment, he or she can supposedly instruct the company to sell the wine in the marketplace, which is how the investors allegedly earn the high investment returns promised in the sales pitch.

The SEC has asked the ADA to forward the information to its members but cannot comment further because it's an ongoing investigation, said David Peavler, assistant director of enforcement of the SEC's Fort Worth, Texas regional office.

The SEC is asking dentists who have been solicited by this company to e-mail Mr. Peavler at peavlerd@sec.gov or Jessica Magee at mageej@sec.gov. The SEC warns that its investigation does not mean anyone has violated the law or that the SEC has a negative opinion of any particular investment, company or person.