eConnect Inc. (fka ECNT)

[CRRue]

message to all ECNC shareholders

http://cnnfn.com/2000/04/25/investing/q_stockscam/


...............Caveat e-emptor

Here are some tips authorities and other sources suggest you heed to avoid being taken in by Internet and e-mail stock scams:

You never know who you are dealing with online or through the Internet. Check with the source -- if you are sent an earnings report from a company, check with the company's Web site.
Treat anonymous or unsolicited e-mails like you would treat anonymous or unsolicited mail or phone calls.
People using aliases or pseudonyms may have connections or a financial interest in the company concerned. It is illegal to tout a stock and get paid for touting it without noting that you were paid, how you were paid and the amount you were paid. But such fraud is still common.
Many other fraudsters are not paid directly by the company but own stock in it or, in reverse, have shorted the stock hoping it will decline. It is not illegal to lie about a company but is illegal to manipulate a stock with the intent of profiting from it. Still, such fraud is also common.
Even well-intentioned people give out misinformation. Be careful not to conflate opinion with fact. Check facts.
Never make an investment decision based solely on what you read online, the SEC recommends. There have been instances of legitimate looking corporate or news items online that turned out to be fraudulent. Look for verification from a second source.
Make sure the address of any information you are reading online meshes with where you expect to be reading it -- even if a release claims to be a company's Web site, make sure the Web address matches the company's Web address.
It is illegal to trade on material, nonpublic information. If someone claims to be giving you such information, why are they giving it to you? Either they are willingly jeopardizing themselves, or they don't know anything of use.
Be especially wary of small, thinly traded companies. These are the easiest to manipulate and the favorite targets of online and e-mail fraud.
If you invest in companies that do not file financial statements with the SEC, you are taking your investment life into your own hands. On your own, you will have to: get and analyze the financials; verify claims about contracts or developments; call suppliers and customers to ask if they really do business with the company; check out management to see if they have made money for investors or, on the other hand, been convicted of fraud before.
For companies registered with the SEC, you can research their filings for free through the EDGAR database for any company that has raised more than $5 million. Even companies that have raised less may file with the SEC. Call [phone] to check for filings, particular for small companies not on EDGAR.
No investment is without risk. Beware of promises of "guaranteed" returns or large, rapid gains.
If there is pressure to invest or upfront fees, walk away.
Be especially careful when investing outside the United States. While it used to be expensive and complicated for offshore conmen to target U.S. investors, the Internet has made it much easier. It is difficult to pursue and prosecute many offshore scam artists.

If you come across suspicious investment activity online, the SEC encourages you to contact it via e-mail at its investor education and assistance office ([e-mail]) or its division of enforcement ([e-mail]). You may also want to enter a complaint with the enforcement division's complaint center.