Vape Holdings Inc. (fka VAPE)

[Dubb10]

Key thing is for these companies to play within the rules laid out by the governing bodies. On their website, SEC warns investors that they are taking risks, esp with OTC stocks. They warned about MJ stocks back in 2014.

Also takes time. As we have seen in the mj sector recently, it can be awhile before the SEC finishes an investigation and builds a case against a company's officer(s).

SEC says they rely on insider tips, complaints, etc for their investigations. Problem is that complaints from retail investors is probably in the tens of thousands b/c there are thousands of companies out there and investors (in many cases) file complaints without substantial proof or due to their own naivety. A stock price plunging isn't proof that something illegal is happening. Now if someone can prove that an insider is illegally selling stock (ie. unregistered stock or transactions), that is something the SEC will act upon. The SEC lists what they are looking for, but (again) substantial proof such as a paper trail is needed.

https://www.sec.gov/complaint/tipscomplaint.shtml