BROWSE BY TOPIC
- Regulatory Sanctions
- Investments - Unsuitable
- Investor Protection
- Investments - Private
- Rules & Regulations
- Investments - Strategies
- Bad Advisors
- Bad Brokers
- Boiler Rooms
- Wall Street News
- Terminations/Cost Cutting
- Compliance Concepts
- General News
- Donald Trump & Co.
- Big Banks
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
Turbo Global Partners – A Microcap Tale
by Howard Haykin
On Thursday, the SEC suspended trading in Turbo Global Partners, Inc. (TRBO), a small over-the-counter stock that focuses on acquiring and managing a portfolio of companies. According to the SEC, the company issued false and misleading COVID-19 claims – that it had entered into partnership to sell thermal scanning equipment to detect individuals with fevers (one of the key early signs of COVID-19) when, in fact, it had not.
HIGHLIGHTING THE RISKS OF INVESTING IN A MICROCAP. Following TRBO’s first press releases on Monday, March 30th, the stock price jumped 81%. When a second press release was issued four days later, the price of the stock jumped another 62%. Any investors who were ‘hoodwinked’ into buying TRBO shares at these high prices are now sitting with enormous losses.
But There’s More. Had the investors tried to look up published information on the company - i.e., due diligence – they would have been sorely disappointed. There are … NO earnings figures, NO credit ratings, NO news stories, and NO financial statements available for TRBO.
Same Time Next Year. And there’s much more. Back on September 22, 2014, a share of TRBO was purchased in the over-the-counter market for $182 million. One year later, in 2015, that same share was purchased for $183,000. And the price declined further over the next 4 years: $4,440 (in 2016), $7 (in 2017), $2 (in 2018), and 1¢ (in 2019).
INVESTOR TAKE-AWAYS. Microcap investing for the uninitiated, or unsophisticated, investor is like a “black hole” – i.e., a region of spacetime where gravity is so strong that nothing can escape from it. DON’T GET SUCKED (OR SUCKERED) IN.
[For further details on Turbo Global Partners, click on … SEC Complaint dtd 5/14/20.]