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Legal Thriller Author Explains What Every Investor Should Know About Internet Stock Scams

A century ago P.T. Barnum sagely told us, "Astoked by the bargain-basement price,
sucker is born every minute." At the time heinvestors flew to the stock driving its price
was,  no  doubt,  correct.from $5 to $7.50 in minutes. With the aid of
the many day traders on the exchange, who buy
No longer. In today's internet world, thatquickly on rumor, the scam artist walked off
time-span has been cut back to every nanawith a fast-buck haul of $520,000. Presto.
second. Now that spam has been somewhatNothing more than a classic pump and dump,
curtailed, scam artists have moved theironly taken out of the usual "pump" time
operations, largely, to internet bulletinframe, speeded up so that the whole thing
boards and chat rooms. That's all. A changewould come to climax before law enforcement
of venue. Like maggots fried in hot grease,authorizes could even answer their phones to
they have moved, jumped, spread out, occupiedtake the inevitable complaints. Real. But,
many  of  these  new  communications centers.like a classic page from a legal thriller
book.
This up-the-ante, beat-the-street move was
made necessary because state law enforcementTake a long look sometime. Observe all of
agencies, the SEC, and the FTC have, inthe stock boards and news boards hanging in
recent years, set up teams to daily policecyberspace. As so many scam artists still
the worldwide web. With spam, being the mostdance on the internet in a perpetual
obvious and easiest to detect, the scamspam-fest, this stock "guru" found a better
artists have been forced to a better,way. Whereas legendary con man, the Music
alternative outlet for their "avant-garde"Man's Professor Harold Hill, gave us 76
visions.trombones, he put a little cha-cha-cha into
the  sax  section.
With a chat room, nothing more than pulling
all the old con-lines out of mothballs andThe SEC gets in upwards of 200 complaints a
reusing them is needed. With con-worldday about illegal activity on the web. Most
tactics, they spiel out typical con-likepf these are stock scams. With fraud made
jargon, and reel in the usual high percentagethis easy it should come as a heavy-booted
of  suckers. Just  like  the  good old days.reminder that this particular form of
Scamology 101 should be featured in Scam
With bulletin boards--those Illusory wallsSchool, for the benefit of all concerned
seemingly profaned by graffiti--it's a littlewatchdogs  and  law  enforcers.
different. The scam artists are challenged.
Tactics and timing take greater emphasis.It's  textbook.
Try  this  example  on  for  size:
With his imposing presence, elegant sartorial
A clever scam artist left a message on astyle, and eloquent use of the language, the
prominent stock board that a small U.S.con man has evolved. And now, with his range
hi-tech company was about to be bought up byso widely expanded, your life as a potential
a European firm for $900.000.000. This was atarget has expanded right along with it.
sum nearly double its market value. TheUnless you count your age in elephant years,
posting had a link to another bulletin boardyou will most likely find yourself in his
which displayed a press release giving thecross-hairs  at  some  moment  in  your life.
details. The press release was a phony,
placed there by the con man himself. HisPrepare. Learn. Now is the time. Be ready
purpose was 1-track, to temporarily drive upfor that cure-all elixir when it comes.
the price of the stock. With the temptations



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