Government Finally Taking Action Against “Hot Stock” Spam

The U.S. Securities and Exchange Commission (SEC) has had their fill of stock spam and are putting the brakes on the trading of companies’ stocks that were advertised in recent spam campaigns.

Thursday, the SEC suspended the trading of 35 small companies that had their stocks spammed and the SEC is opening investigations looking into who has purchased those stocks, so they can find out who is behind the scams.

We’re telling investors to be wary of spamming emails. It’s the first large-scale trading suspension aimed at spam companies,” said Bruce Karpati, assistant regional director of the SEC’s Northeast Regional Office. “It’s the first step in getting to the bottom of who’s behind the promoting and spamming of these companies.”

About time!! I’ve been forwarding these spams to  enforcement at sec.gov and  uce at ftc.gov for years but haven’t heard about the SEC actually doing anything about them. It’s good they’re finally looking into it now, but why haven’t they started years ago?

[SEC Cracks Down on Ticker Spam]

[tags]SEC, FTC, Stocks, Pink Sheets, NYSE, NASDAQ, spam, pump and dump[/tags]