The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors about investment frauds involving claims that a company’s products or services will be used to help stop the coronavirus outbreak.
Fraudsters often use the latest news developments to lure investors into scams. We have become aware of a number of Internet promotions, including on social media, claiming that the products or services of publicly-traded companies can prevent, detect, or cure coronavirus, and that the stock of these companies will dramatically increase in value as a result. The promotions often take the form of so-called “research reports” and make predictions of a specific “target price.” We urge investors to be wary of these promotions, and to be aware of the substantial potential for fraud at this time.
Be cautious of claims that a company’s products or services can help stop the coronavirus, especially claims that involve microcap stocks. These claims may be made as part of fraudulent “pump-and-dump” schemes. You may lose significant amounts of money if you invest in a company that makes inaccurate or unreliable claims. You may not be able to sell your shares if trading in the company is suspended. Submissions of tips, complaints, or referrals relating to suspected securities fraud or wrongdoing can be made online at https://www.sec.gov/tcr. Although false statements relating to coronavirus may be about any company, microcap stocks may be particularly vulnerable to fraudulent investment schemes, including coronavirus-related scams. Microcap stocks are low-priced stocks issued by the smallest of companies. There is often limited publicly-available information about microcap companies’ management, products, services, and finances. This can make it easier for fraudsters to spread false information about the company and to profit at the expense of unsuspecting investors.
For example, in a “pump-and-dump” scheme, promoters “pump” up, or increase, the stock price of a company by spreading positive, but often false, rumors. These rumors cause many investors to purchase the stock. Then the promoters or others working with them quickly “dump” their own shares before the hype ends. Typically, after the promoters profit from their sales, the stock price drops and the remaining investors lose most of their money.
SEC Trading Suspensions. SEC staff actively monitors trading activity, and the SEC can suspend trading in any stock for up to 10 days when it believes that information about a company is inaccurate or unreliable. Investors who own stock in a company subject to a trading suspension may be unable to sell their shares until the trading suspension is lifted, or even after.
9/2/20 Consent Order - State of South Carolina: 2hsvz0l74ah31vgcm16peuy12tz.wpengine.netdna-cdn.com/wp-content/uploads/2020/09/Rosen-02371566xD2C78.pdf
DESIST AND REFRAIN ORDER AGAINST SERVICE TEAM, INC., ETC. (Violations of Section 25401; State of California Corporations Code)
The California Commissioner of Business Oversight (“Commissioner”) finds that:
1. At all relevant times herein, Hallmark Venture Group, Inc. (“Hallmark”), a Nevada corporation, had its primary place of business located at 18482 Park Villa Place, Villa Park, California.
2. At all relevant times herein, Service Team, Inc. (“Service Team”), a Nevada corporation, had its primary place of business located at 18482 Park Villa Place, Villa Park, California. Service Team maintained a website at www.serviceteaminc.com.
3. Hallmark was Service Team’s controlling shareholder.
4. Robert L. Cashman, aka Bob Cashman (“Cashman”), was Hallmark’s president, secretary, treasurer, and director.
5. Cashman was the director, secretary, and treasurer of Service Team.
Nothing I say, post, or do should ever be considered financial advice. It is just my personal opinion. I may be holding a long, short or no position. I am NOT or NEVER have been compensated to post on here and my posts are for entertainment purposes only.
AI
