Beware of Pump and Dump Schemes With Microcap Stocks
Our securities fraud lawyers have written before in this column about pump and dump schemes and penny stocks. In a pump and dump, fraudsters artificially run up share prices (pump) and then dump the shares on the market down causing innocent investors who bought on the pump to lose money on the dump. Last week, the Securities and Exchange Commission (SEC) accused Phillip Frost, the billionaire chairman of broker dealer Ladenburg Thalmann, and other individuals and entities of participating in a $27 million pump and dump scheme involving shares in biotech stocks. The California securities fraud attorneys at Evans Law Firm, Inc. can represent investors victimized by pump and dump schemes and other kinds of security fraud. If you’re in California and a victim of securities fraud call our securities fraud lawyers today at (415)441-8669.
The SEC accused defendants in a 15-count, 53-page complaint of violating antifraud, beneficial ownership disclosure and registration provisions of federal securities laws. A seniors official in the SEC’s Division of Enforcement said in a statement that the defendants “engaged in brazen market manipulation that advanced their interests while fleecing innocent investors and undermining the integrity of our securities markets. They failed to appreciate, however, the SEC’s resolve to relentlessly pursue participants in microcap fraud schemes.”
SEC Whistleblower Program
Often, fraudulent securities schemes are brought to light by securities fraud whistleblowers. The SEC Whistleblower Program rewards whistleblowers with original information that leads to enforcement and recovery. Rewards can be 10-30% of the amount recovered, including penalties. If you have credible, original information of any type of securities fraud, including pump and dump schemes, call our SEC whistleblower and securities fraud lawyers today, and we can help organize your case for submission to the SEC or other appropriate agency. If you have information don’t just call a government agency as you might jeopardize your chances at a reward. Call counsel such as the whistleblower attorneys at Evans Law Firm first.
If you have been defrauded by a broker or advisor through securities fraud or have information that can lead to a whistleblower case, call Ingrid M. Evans and the other San Francisco and California securities fraud and whistleblower attorneys at Evans Law Firm, Inc. at (415) 441-8669, or by email at <a href=”mailto:email@example.com”>firstname.lastname@example.org</a>. Our attorneys have experience with securities and other investment fraud, financial elder abuse cases and complex qui tam or whistleblower cases including offshore tax avoidance cases, complex financial contract cases and cases against large insurance companies. We can help guide your case through a jury trial or toward an equitable settlement. We also handle cases involving physical elder abuse, nursing home abuse, whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.
 Evans Law Firm, Inc. is not involved in the case in any way.