To all those that LEAD in trading plays:
Let this be a lesson to all. . .
Today, a fellow individual investor, TokyoJoe, was sued by the SEC. . . . the claim reads that he was selling into buying created by his own recommendations. . . also for misrepresenting his performance from his picks.
A few things that need clarified. . . first, I am not going to speculate or comment on this case, as I do not have the information needed to do so.
This sort of thing runs rampant on the current crop of message boards. . . part of this is due to the anonymity many feel by using handles. . . and part is that there is no accountability for statements made. So a poster will get away with something one day. . . .and not feel bad at all for repeating a particular violation. . . over and over and over again.
Whether it be orchestrated manipulation of a stock. . .manipulation of shareholders by either pumping or bashing. . . .spreading falsehoods about a stock. . . . frontrunning [long or short]. . . playing against those you advise. . . or many other such violations. . . these are illegal. . .and will eventually be prosecuted by the SEC. And rightfully so.
We work hard here to make gains on unlevel playing fields. There are many unfair advantages that are designed to benefit the brokers, market makers and largest traders. . . we work hard to stay competitive. This is why I stopped making "picks" nearly a year ago. . . and we moved primarily into position trading. . .
I have never tolerated securities violations on this thread. . . and have had to chase away [in public or private] those that have tried to come to the HOME thread for the purpose of defrauding us in one way or another. . . As the SEC has set down hard and fast rules, I intend on upholding such rules. .on message boards, chat rooms and any other locations. . . . Insighters.com is being designed specifically to keep such nonsense to a minimum. . .thus bringing on a new generation of investor communication, which has accountability.
This quote from the article states plainly and clearly the intentions of the SEC, with regard to such nonsense:
Today's action makes clear that we will not tolerate fraudulent
conduct or undisclosed conflicts of interest by those peddling investment advice on the Internet," said SEC Enforcement Division chief Richard H. Walker.
Article: cbs.marketwatch.com
There are those on the net that are in celebration of this news. Celebrating a neighbors misfortune is never wise, in my opinion. There is far too much hatred in the real world. . . no need to stink up cyberspace with it. So I would appreciate comments on this subject to be limited to the subject of fraud. . . .no taking pot shots at a fellow investor. . .regardless of the situation.
There are still many more violators on these boards. And in my estimate, this suit is just the beginning. Manipulation has become commonplace of late by Wall Street. I would hope that Individual Investors would not assume that they can partake as well.
As nutty as it sounds. . . the rules are DIFFERENT for brokers than for individuals. . . brokers are "allowed" to say and do things that individuals are not. . . frontrunning is a prime example . . . when a brokerage wants out of a stock. . . an upgrade provides just the volume to prop up the price for a nice exit. . . or a downgrade or slam to get the price down for a cheap entry.
But don't be confused! If you or I were to do that, it would be a securities violation. So when in doubt. . . look it up . . .or don't do it. Those leading picks here or anywhere on the net should spend a day or so reading the SEC website at sec.gov.
We on the HOME thread, will continue turning in violators or violations that we see. And that is one factor that sets this thread apart from the rest on the net.
Food for thought. . .
Rande Is |
