Many of these schemes claim that what is being sold is not a security. Some sellers falsely claim that promissory notes or other investments are not securities. Or the interests they are selling are labeled "general partnership interests" or "limited liability membership interests.” If they are doing the essential managerial work and you are mostly just giving them money, then they are selling a security and it must be registered with Wisconsin Division of Securities unless otherwise exempt from such registration. People offering and selling fraudulent investments normally do not even attempt to register them under the securities laws, because of the factual disclosures they must make to register the securities. That is why you should always check to see whether the investments being offered to you are registered or exempt from registration.