Actually, that story pretty much makes my case that the SEC does not fulfill its mission of protecting investors. Let's say a thief burgles your home and takes a $15,000 ring. He gets caught, has to give back the ring, and pay a $10,000 fine. He is $10,000 in the hole, but let's say he burgles another home, takes a $15,000 ring, and doesn't get caught. He's up by $5,000. If he burgles ten homes and only gets caught half the time, he's made $25,000. That's not much incentive for him to stop burgling homes. I think everyone will admit the vast majority of penny stock crimes never face legal consequences, and the perpetrators who do get caught usually only receive a "slap on the wrist". That's why microcap scams proliferate faster than bunny rabbits. If SEC investigations led to criminal charges and incarceration, with escalating time spent behind bars for repeat offenders, fraudsters would think harder about plying their trade in the public markets.
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