Typical of the defrauded customers is an 81-year old retiree whose wife is suffering from Alzheimers disease. Respondents issued press releases and other material with false statements about these assets and other aspects of the company. The Commission's suspension of trading stopped the ongoing manipulations and placed an additional burden on broker-dealers to update their files with accurate information about the companies before they resumed or began quoting the securities. Since the Commission's first microcap fraud sweep in September 1998, it has suspended trading in the stock of 19 microcap issuers. The SEC acknowledges the valuable assistance of the National Association of Securities Dealers in a number of these cases.
Information is an investor's best tool for investing wisely and avoiding fraud.
But many microcap companies do not file reports with the SEC, making it difficult to get the facts about the company's management, products, services, and finances. Sometimes, just one phone call to your state securities regulator to check out brokers and investments can save you from losing money. Don't fall for promises of quick profits or guaranteed returns, or be pressured to invest before you investigate. In the Matter of National Stock Transfer, Inc. In the Matter of Energy Equities, Inc.