There really is no way of doing this whilst not damaging current invetors but I certainly sympathize with anyone now stuck. When they find strong evidence of wrongdoing they have to act to protect potential future investors and to stop the company from inflicting any more damage. While it certainly is an imperfect system it is the best we have and I don't see any changes coming to it. I suppose the only solace is that they do not make this decision without pretty much irrefutable proof and one can still get out IF THEY WANT TO and if they are quick when it resumes on the greys.
"The SEC need to find a way to not damage the people who are in the suspended stocks. Even if they do not a mistake the damage for the existing shareholders is huge." The SEC go out of their way to warn investors of the dangers of microcaps like GTGP:
"Many microcap companies do not file financial reports with the SEC, so it's hard for investors to get the facts about the company's management, products, services, and finances. When reliable information is scarce, fraudsters can easily spread false information about microcap companies, making profits while creating losses for unsuspecting investors."
And this:
"Does the investment sound too good to be true? If it does, it probably is"
Short of closing down all of the the Pinks and most of the OTC market (which BTW would be a highly positive move for the interests of genuine investors and for the capital markets in general), it's difficult to know what more the SEC can do.
Frankly, while it's a harsh message, if you "invest" in penny stocks like GTGP, then you should be prepared to lose all of your stake at any stage.
If it's any consolation you can be absolutely sure that James Fallacaro will still be a millionaire when GTGP is eventually revoked after months or years on the Grey Market.
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