NanoViricides Inc. (NNVC)

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"The SEC has brought charges against promoters for not disclosing the compensation they were receiving for promoting a stock."
https://www.sec.gov/oiea/investor-alerts-bulletins/ia_promotions.html


"March 29, 2016

The SEC’s Office of Investor Education and Advocacy is issuing this updated Investor Alert to warn investors about fraudsters who promote a stock to drive up the stock price and then sell their own shares at the inflated price, making money at investors’ expense.

Fraudsters who conduct stock promotions are often paid promoters or company insiders who stand to gain by selling their shares after creating a buying frenzy and pumping up the stock price. The promoters or insiders make profits for themselves while creating losses for unsuspecting investors.

The SEC has brought charges against promoters for not disclosing the compensation they were receiving for promoting a stock. In SEC v. Smith, the SEC alleged that the defendants fraudulently promoted a data storage company through emails, online blogs, articles, and other media, without fully disclosing their compensation or that they would be paid more if they increased the company’s share price. According to the SEC’s complaint, the defendants made false and misleading statements to try to increase the trading volume and share price of the company’s stock, including falsely naming well-known companies as customers and making highly misleading projections about investment returns. "