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

Top 5 reasons to deploy VMware with Tegile

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

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.