“PROMOTERS” NEED TO STOP PLANNING GET RICH QUICK SCHEMES
It still surprises me to see penny stock promoters thinking they can get away with pump and dump schemes. Kudos once again to the SEC for cracking down on stock scams that are a scourge on the small-cap and micro-cap industry:
Washington, D.C., Sept. 15, 2008 – The Securities and Exchange Commission today charged an Irvine, Calif., attorney and two other promoters for conducting a $52.7 million Ponzi scheme in which they sold investors bogus PIPE (private investment in public equity) investments, promised unrealistic profits, and misappropriated more than $20 million of investors’ funds to function as their own personal piggy bank. [FULL STORY]
INVESTORS NEED TO STOP FALLING FOR GET RICH QUICK SCHEMES
I could preach but this quote from the SEC sums it all up:
“Investors must be wary of promoters, even securities attorneys or other purported ‘
experts’ who offer investment opportunities with high returns but fail to disclose
complete and verifiable information about the investment they’re touting,” said
Rosalind R. Tyson, Regional Director of the SEC Los Angeles Regional Office.
“In this case, as alleged in our complaint, the so-called PIPE investments did not
exist. The defendants raised millions of dollars from unsuspecting investors
and simply used it to enrich themselves.”
Admittedly, when it comes to trust, this has been a rough year for investors. Wall Street, regulators and the SEC have all failed at their jobs – but this shouldn’t stop you from exercising common sense when it comes to “too good to be true” scenarios.
Regards,
George