Medical Marijuana Spawning Pump-and-Dump Scams: Finra
August 21, 2013 Leave a comment
Medical Marijuana Spawning Pump-and-Dump Scams: Finra
Con artists are taking advantage of the legalization of medical marijuana to lure investors into buying stock in weed-related companies, regulators said.
The scammers may be promoting the shares, then selling them to gullible investors in what’s called a “pump-and-dump” scheme, the Financial Industry Regulatory Authority said today in an e-mailed statement. The companies are touting their growth potential as more states allow pot for medical or recreational use, Wall Street’s self-funded regulator said.
“We’ve seen a rise over the last couple of months in marijuana-related potential stock scams,” Gerri Walsh, Finra’s senior vice president for investor education, said in a phone interview. “We often see with these stock-fraud scams that the next big thing, the cons tend to circle around.” Read more of this post





