To: Frank_Ching who wrote (7637 ) 5/1/2000 12:13:00 PM From: Sir Auric Goldfinger Read Replies (6) | Respond to of 10354
U.S. Regulators Crack Down on Internet Fraud. Washington, May 1 (Bloomberg) -- Federal regulators are forcing 14 Internet companies peddling ``get rich quick'' schemes to change their advertising and sales pitches, in a sweep aimed at sending a message against Internet fraud. The Commodity Futures Trading Commission settled fraud charges against 10 Web sites that promised customers big profits if they used the sites' futures trading software or services. The Federal Trade Commission acted against three sites offering easy money from day trading, one of them jointly with the CFTC, and the Securities and Exchange Commission settled a case against one site. The Internet is the latest avenue for con artists to reach their potential victims, pitching foreign currencies, work-at-home scams, stock fraud and other schemes, regulators said. ``People who push day trading systems or services as a sure way to make money are peddling pipe dreams,'' said Jodie Bernstein, director of the FTC's bureau of consumer protection. ``Day trading is a high-risk venture that's likely to leave investors high and dry.'' Some Internet companies said customers could earn six- or seven-figure incomes from day trading, in which investors buy and sell a stock or other asset in a short time frame, the FTC said. The companies hawked products such as online training, manuals, newsletters, mentoring services and software programs. ``Today's actions by the CFTC should help remind consumers to be very skeptical when someone promises amazing investment profits with little or no risk,'' CFTC Chairman William J. Rainer said. Some site operators claimed that they made returns of over 300 percent when the trading was merely hypothetical, said Phyllis Cela, acting CFTC enforcement director. ``The real point of all these cases is that the site be cleaned up (and) send a really crisp message,'' she said, noting that half of the wrongdoers will pay ``a modest fine.'' Government officials have coordinated their efforts in two public sweeps of the Internet for bogus claims of investment opportunities and other fraud, as well as joint behind-the-scenes legal action. In March, agencies from 28 countries used popular Internet search engines to find 1,600 sites offering a myriad of suspicious schemes. About 40 percent of those sites shut down or changed their pitches after authorities sent warnings over e-mail, U.S. regulators said. --Katherine M. Reynolds in Washington (202) 624-1934 or