SEC Goes After Stocks Scam E-mails

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Rich Tate

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Jun 9, 2005
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The SEC took action against 35 companies by suspending trading of their stock assets because they were linked to scam e-mails. I see at least 5-10 of these a day, so it’s nice to see someone stepping up.

E-mails heralded with messages such as "Ready to Explode," "Ride the Bull" and "Fast Money" clog people's inboxes - an estimated 100 million of them a week - and spark dramatic spikes in trading and stock prices before the spamming stops and investors lose their money, the SEC said.
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This actually really surprised me:

...and spark dramatic spikes in trading and stock prices before the spamming stops and investors lose their money, the SEC said.
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To say that trading prices "sparked" would suggest to me that people actually buy stocks based on a random e-mail from someone they don't know with the title 'Red Bull Owns'?! :eek:
 
Rich Tate said:
This actually really surprised me:



To say that trading prices "sparked" would suggest to me that people actually buy stocks based on a random e-mail from someone they don't know with the title 'Red Bull Owns'?! :eek:
Click to expand...

Not to surprising.. a while back they nabbed some kid for directly sending messages/posting/etc saying how great a particular (I think it was a penny) stock was going to do via a potential product, he raked in a bank when he sold... well before they took it all away and charged him with fraud.
 
Yes, these pump and dump spam scams are successful enough to keep doing them. You spam out 50 million people, and you only need a very small percentage to do anything for it to be profitable.

Of note, if you want to "DoS" a penny stock company, now, all you do is spam out in a similar fashion and wait for their trading to be frozen. GG.
 
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