Salem-News.com Stock Fraud articles

Salem Man One of Four Charged in NW Marijuana Related Stocks Scheme

In May, the SEC warned investors about possible scams involving marijuana-related investments, saying fraudsters often try to exploit new growth industries by manipulating stocks.

(WASHINGTON, D.C.) - The Securities and Exchange Commission on Tuesday charged four promoters with ties to the Pacific Northwest for manipulating the securities of several microcap companies, including marijuana-related stocks that the agency has warned investors about in recent weeks.

The SEC alleges that the four promoters bought inexpensive shares of thinly traded penny stock companies on the open market and conducted pre-arranged, manipulative matched orders and wash trades to create the illusion of an active market in these stocks.