If you have been the victim of microcap fraud, there is a wealth of help available to you.  The Securities and Exchange Commission works closely with the FBI, U. S. Attorneys, and other criminal prosecution authorities to prosecute securities fraud and recover losses for you.

Microcap stocks are low-priced stocks, issued by small companies, including what are commonly called penny stocks.  Because they’re not heavily regulated, it’s harder to find public information about them.  They don’t usually trade on national securities exchanges, so they’re not as liquid as other high price stocks, and the price can easily be manipulated.  That makes them an easy target for fraud.

The fraudulent practice of microcap fraud is to conduct a misleading promotional campaign for microcap stocks, to attract investors to buy.  The volume and price of the stocks are then artificially increased so the promoters can sell their stocks with high profits.  Then, without the continuing campaign, the price bottoms out and the investors are left with practically worthless stock.  This is commonly called a pump and dump scheme.

You can leverage these resources by contacting the attorneys at Wilson, Bradshaw and Cao, LLP.  They will gather the information about your experience, organize it, and present it in a way for the SEC and criminal authorities to use and apply to their case.

There are five kinds of information the SEC and criminal authorities use.  

  1.  They look at trading patterns which suggest illegal activity.  The details of your experience, along with that of others will develop those patterns.
  2. The promotional statements determine how misleading the scheme was, and how much influence they would have on the investor in microcap stocks.
  3. The promotional statements are compared to the applicable laws, to determine if they are actionable.
  4. The promoters and other orchestrating participants need to be identified, so liability can be tied to specific individuals.
  5. The stock and money trails need to be followed through nominee entities with complex corporate structures, transfer agents, broker-dealers, banks, and often, off-shore financial institutions.

The SEC and criminal authorities have had great success in obtaining civil and criminal judgments by using cooperators and undercover agents who can interact with the wrongdoers and collect very powerful evidence, once they have the facts of investor experiences to go on.  

Not only will the perpetrators be removed from the securities market, but the investors will be compensated, with recovered funds, for the losses suffered at the hands of both civil and criminal promoters.  No one is exempt or above the law.  Actions have been successfully brought against corporate insiders, stock promoters, gatekeepers, issuers, promoters, attorneys, auditors, broker-dealers, and others who give life to and facilitate these elaborate schemes.

Contact Corporate Securities Legal LLP if you have any questions on this matter: /location/contact/