WASHINGTON DC – Fake news isn’t limited anymore by any presidential political talk or conspiracy theories.
Investor’s additionally needed to be on high alert for stock promotions masquerading as some neutral unbiased report online.
“Our markets cannot operate fairly when there are deliberate efforts to reach prospective investors with positive articles about a stock, while hiding that the companies paid for those articles,” Melissa Hodgman is the associate director of the SEC’s enforcement division who made this statement.
Federal regulators are bringing civil fraud charges against 27 individuals as well as businesses for deceiving countless investors into believing they are reading some sort of independent and impartial analyses of current stocks online.
The agency said in some of the lawsuits, they found more than 250 articles containing false statements attesting how the writers hadn’t been compensated by any companies these folks were covering, which they actually were and are, some call it a Pump and Dump, a push to have people invest in a bogus stock that these con artists dump on the buyers.