Investors are being warned by The Financial Industry Regulatory Authority (FINRA) to be wary about any potential stockbroker scams that could involve companies that claim to sell fortified foods, energy drinks, and/or “natural” medicines.
In one of its latest Investor Alerts, FINRA warns investors about potential nutraceutical stock investment scams that may be pitched by small companies that are not heavily traded and have no history of financial success. Despite this, FINRA reports that potential stock scams could involve these types of companies luring investors with false and misleading information in order to create an unwarranted demand for shares.
Once they have sold enough shares, the thieves behind the scam can simply sell off their shares, leaving investors with worthless stock.
“While nutraceuticals claim to help people become healthy, investing in some of the companies associated with these products can make investors’ portfolios sick,” said Gerri Walsh, FINRA’s vice president for investor education. “The best way investors can inoculate themselves against investment scams is to ask and check.
FINRA additionally warns investors that the pitches they may receive could come in any number of ways, varying cold calls and emails to messages sent via social media.
If you or a loved one has been victimized by stockbroker or securities fraud scheme, there may be legal options available that are worth pursuing. Call Sokolove Law today to learn more about pursuing a stockbroker fraud lawsuit.