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Friday, 05/24/2019 5:36:25 PM

Friday, May 24, 2019 5:36:25 PM

Post# of 34861
PURA - stock promotion flag is finally gone, but....

From previous enforcement actions against fake news and scammy promotions: Did USMJ, PURA, KALY, etc main stock promoter nextbigtiCker go into hiding after PURA got the stock promotion flag on it?

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According to the press release, the SEC uncovered scenarios in which public companies hired communication firms to generate publicity for their stocks, and the firms subsequently hired writers to publish articles promoting the stocks and failing to disclose payment from the companies. The scheme entailed more than 250 articles that “left investors with the impression they were reading independent, unbiased analyses on investing websites” when in fact they were reading paid advertisements.

Although “fake news” is rampant around the Internet, the SEC’s recent enforcement actions underscore the agency’s commitment to weeding out this deception when it relates to investments. The Associate Director of the SEC’s Division of Enforcement, Melissa Hodgman, stated: “Deception takes many forms. Our markets cannot operate fairly when there are deliberate efforts to reach prospective investors with positive articles about a stock while hiding that the companies paid for those articles.”

The SEC also released an investor alert warning about these schemes. According to the alert, microcap stocks may be particularly susceptible to undisclosed paid stock promotions that appear to be unbiased sources of information (as well as other forms of market manipulation). This investor alert suggests there may be ongoing violations in this area, which represents an opportunity for SEC whistleblowers to earn a reward.

SEC Whistleblower Program

Under the SEC Whistleblower Program, whistleblowers may be eligible for monetary awards when they voluntarily provide the SEC with original information about violations of federal securities laws that leads to a successful enforcement action resulting in monetary sanctions exceeding $1,000,000. Whistleblowers are eligible to receive between 10% and 30% of the monetary sanctions collected.

The SEC Whistleblower Program also protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity. In fact, whistleblowers can even submit a tip anonymously if represented by counsel.

Since the law went into effect, the SEC Whistleblower Office has awarded more than $149 million to 41 whistleblowers. The largest award to date is more than $30 million. In 2016, the office issued more than $57 million in awards to whistleblowers.