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Microcap & Penny Stocks : UPCA - Uniprime Capital Acceptance, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: EL KABONG!!! who wrote (623)	7/8/2000 10:17:37 AM
From: Jeffrey S. Mitchell	Read Replies (1) \| Respond to of 640

The following comes from the ABC 20/20 website: Online Investment Scams AIDS Cure Hoax Cheats Investors Press releases that touted Plasma Plus as a major breakthrough in treating HIV were false and misleading — a scam that cost investors millions. (ABCNEWS.com) By Rebecca Raphael July 7 — It sounded like a medical miracle — a drug touted as a breakthrough treatment for the virus that causes AIDS. Press releases on the Internet as early as 1998 from Uniprime Capital claimed to have had documentation from the government of Spain indicating that their treatment, called Plasma Plus, was a medical wonder. Internet message boards, which are only liberally monitored, raved about this “most undervalued stock” that was “a once-in-a-lifetime opportunity.” Thousands of people got word of the company, whose stock was compared to buying Microsoft at a nickel. In just a few days, more than 5 million shares of Uniprime changed hands and the stock spiked more than 800 percent. The information, which turned out to be from an obscure Nevada automotive company, was false, and the hoax led not only to false hope, but also cost investors an estimated $20 million. Police say Alfred Flores was the man behind the pump-and-dump scam, though he maintains his innocence. He faces fraud charges for allegedly falsifying his résumé and scientific research. Uniprime has denied any wrongdoing and has not been charged. The company claims it was duped by Flores and that it did not profit from the stock price movement. ===== Avoiding Investment Fraud With more than 7 million Americans trading online — comprising 25 percent of all trades made by individual investors — investment fraud on the Internet happens all the time. And while the Web has legitimate investment opportunities, it can also be the breeding ground for unscrupulous players, as the Uniprime scam shows. “You cannot believe the stories we hear about people who have been ripped off,” says Cameron Funkhouser of the National Association of Securities Dealers, a self-regulatory organization that oversees all brokerage operations in the United States. The Securities and Exchange Commission and other regulators are cracking down on Internet fraud, but how can you tell if you’ve hit investment jackpot or spotted blatant fraud? -- Never invest based solely on bulletin board postings or an online newsletter. While they can offer instant and valuable information, they can also be tools for fraud. “Treat bulletin boards for what they are: anonymous conversations,” says Funkhouser. “All the scamsters need is a small percentage of people reading message boards to purchase the stocks that they’re pumping.” Likewise, online newsletters — and the hype that often follows — spread quickly, with seemingly unbiased information. But they are often written by people who stand to profit off unsuspecting investors. -- Look for key phrases. Any claims of “inside information,” an “IRA-approved investment,” “the most undervalued stock,” offers of a “risk-free” or “ground-floor opportunity” that’s “guaranteed” to turn big profits in a short time may be signs that investment opportunities are too good to be true. -- Take your time. Don’t respond — at least not too quickly — to opportunities that require you act immediately claiming, for example, that “the market is moving” or offering a “limited-time offer.” No matter how tempting the offer, do not give in to pressure to invest before you investigate. -- Research the company. Find out who you are dealing with, know what you are buying and the risks of your investment. Is the investment registered? Does the company have a record of complaints or fraud? Get the company’s prospectus or financial statements and verify their claims. Many companies are required by law to file forms with the Securities and Exchange Commission. You can find these forms online in the SEC’s EDGAR database or look at the North American SecuritiesAdministrators Association’s site to locate your securities regulator. (See Web links at right.) -- Consult a trusted third party. Whether it’s your attorney, financial advisor, accountant or a friend, it’s a good idea to talk to someone before making an online investment. -- Don’t submit financial information online. Or at the very least, you should first read the site’s privacy policy to find out what personal information the site collects and how it will be used. Some Web sites may ask for information about your income, bank accounts or Social Security number as a ploy to develop a list of potential investors. -- Be wary of international opportunities. Off-shore frauds are not only difficult to track, but also more challenging for U.S. law enforcement agencies to investigate and prosecute. -- If you have a complaint: If you think you’ve been a victim of online investment fraud, act promptly because you have a limited time to take legal action. (See Web links at right for sites that include information on filing a complaint.) abcnews.go.com