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Stories of Interest
- Deutsche Bank Is Weighing Massive Cuts in Its U.S. Cash Equities Unit
- Richard Jenrette, Co-Founder of DLJ Investment Bank, Dies at 89
- Goldman Sachs Makes First Hire in Cryptocurrency Markets Unit
- Special FINRA Election to Fill Large Firm Governor Vacancy
- Chicago-Based Investment Adviser Sentenced to 151 Months in Prison - SEC
- Dun & Bradstreet Hit With FCPA Violations - SEC
- SEC Charges Additional Defendant in Fraudulent ICO Scheme
- Warren Buffett Simply Blew it on Wells Fargo Stock: Dick Bove (Video)
- Barclays and Deutsche Bank to Lag U.S. Trading Peers
- NY AG Schneiderman Seeks to Close Loophole That Could Let Trump Pardons Block State Charges
- 'Fearless Girl' is Moving to NYSE After Year Staring Down 'Charging Bull'
- What's In Your Wallet - American Express Shares Soar After Earnings Release
- Deutsche Bank's Executive Departures Continue Following Change in CEO
- Reflections of an Economist Commissioner (SEC's Piwowar)
- Billionaire HF Manager and The Fed Chair Runner-Up are Investing in New Cryptocurrency
- Court Finds 2 Brokers Liable for Fraud Involving Mortgage-Backed Securities
- One FINRA: An Organization’s Commitment to Diversity and Inclusion
- 2018 GASB Accounting Support Fee to Fund the Governmental Accounting Standards Board
- Barclays Eyes Move Into Cryptocurrency Trading
- Goldman Breaks From Wall Street Pack with Bond-Trading Boom
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NEWSLETTERS & ALERTS
SEC Cracks Down on Fake Stock Tip Posts
The SEC took enforcement actions against 27 individuals and entities behind various alleged stock promotion schemes. In each case, writers allegedly posted bullish articles about companies on the internet that appeared to be objective and impartial but were, in reality, nothing more than paid advertisements.
SEC investigators uncovered alleged scenarios in which public companies hired promoters or communications firms to generate publicity for their stocks, and those firms hired writers to publish articles that did not publicly disclose the payments from the companies. More than 250 articles specifically included false statements that the writers had not been compensated by the companies they were writing about.
- One writer wrote under his own name as well as at least 9 pseudonyms, including a persona he invented who claimed to be “an analyst and fund manager with almost 20 years of investment experience.”
- One of the stock promotion firms went so far as to have some writers it hired sign non-disclosure agreements specifically preventing them from disclosing compensation they received.
All told, fraud charges were filed against: 3 public companies; 7 stock promotion or communications firms; 2 company CEOs; 6 individuals at the firms; 9 writers.
Of those charged, 17 have agreed to settlements that include disgorgement or penalties ranging from approximately $2,200 to nearly $3 million based on frequency and severity of their actions. SEC litigation continues against 10 others.