SEC targets fake stock news on financial websites

[Eugene]

Source: Reuters

INTERNET NEWS | Mon Apr 10, 2017 | 4:20pm EDT

SEC targets fake stock news on financial websites

By Jonathan Stempel

The U.S. Securities and Exchange Commission on Monday announced a crackdown on alleged stock promotion schemes in which writers were secretly paid to post hundreds of bullish articles about public companies on financial websites.

Twenty-seven individuals and entities, including a Hollywood actress, were charged with misleading investors into believing they were reading "independent, unbiased analyses" on websites such as Seeking Alpha, Benzinga and Wall Street Cheat Sheet.

The SEC said many writers used pseudonyms such as Equity Options Guru, The Swiss Trader, Trading Maven and Wonderful Wizard to hype stocks.

It said it found more than 450 problem articles, of which more than 250 falsely said the writers were not being paid.

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Read more: http://www.reuters.com/article/us-sec-fakenews-idUSKBN17C1YP

[Warpy]

1. Gee, what a shock.

It's not like the screamers on the cable financial channels have ever pumped a stock that some brokerage was doing a pump and dump on. Even Rukeyser on PBS gave lousy advice because by the time he ran across information, it was weeks out of date.

Anybody who looks to online sites or broadcast media for investment advice had better be prepared to lose his shirt.