Whenever there is a public panic, you can bet that there are wrongdoers behind the scenes looking to exploit the vulnerable and line their own pockets. A statement released on February 4, 2020 by the U.S. Securities and Exchange Commission (SEC) cautioned investors about fraudulent claims that a company’s services or products would help prevent, detect, or cure the coronavirus outbreak.
Fraudsters use sophisticated strategies—such as headlines and the latest news developments—to convince investors that stock in these publicly-traded companies will dramatically increase in value. For example, effective mediums in which con artists lure unsuspecting investors is through internet promotions and social media.
Unfortunately, people that invest in companies that make inaccurate or unreliable claims may lose a significant amount of money when trading in the company is suspended making them unable to sell shares.
The SEC particularly warned against claims that involve microcap stocks because they may be made as part of fraudulent “pump-and-dump” schemes. For more information, read the full SEC Investor Alert here.
Our Investment Fraud Attorneys Are Here For You
Oakes and Fosher reminds you that when making an investment, arm yourself with as much information as possible. Be sure to understand:
- What you are investing in
- Who you are doing business with
- Where your money is going
- How your money will be used
- How you can get your money back, if necessary
This is especially imperative now during a time of such fear and panic. Here at Oakes & Fosher, our thoughts are with you and your loved ones to stay safe and be well.
We dedicate our entire legal practice to helping investors across the nation. If you have ever been taken advantage of—now or in the future—contact our investment fraud attorneys for a free and private consultation.
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