Feeds

Feds bust 44 Internet stock tipsters

The SEC has drawn up a very long list of very small offending companies

  • alert
  • submit to reddit

Internet Security Threat Report 2014

The US Securities and Exchange Commission has produced a list of 44 tipsters who it claims have fraudulently recommended 235 small companies' stocks on the Internet. The outfits accused all seem small, but the range of offences the SEC alleges suggest that it's a jungle out there -- as if we didn't know already. The tipsters are claimed to have been illegally touting securities and misrepresenting themselves as providing independent advice when in many cases they were being paid by the companies they were promoting. They sometimes had shares in these companies, or were rewarded with stock, and sold the shares once the price jumped after they'd recommended it. Richard Walker, SEC director of enforcement, says that in all cases the promoters purported to be giving independent opinions when those opinions were in reality "bought and paid for". The amount paid totalled $6.2 million cash, and 1.8 million shares. Although the tipsters were frequently individuals or very small outfits working from home, they appear to have been able to have considerable influence on small stocks. Companies buying their services paid as much as $300,000, says the SEC. And hard cash doesn't seem to have been the only factor involved. The SEC reports that one promoter sent out six million emails promoting his father's chain of restaurants. ® Click for more stories Click for story index

Providing a secure and efficient Helpdesk

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.