On March 28, the US Securities and Exchange Commission (SEC) suspended for ten days the trading of thirty-five stocks heavilly touted in a recent, massive “Pump and Dump” spam scheme. SEC chairperson Christopher Cox described Pump and Dump spam as “…one of the worst menaces of the information age…”
The SEC has initiated a campaign, dubbed “Operation Spamalot,” to tackle the growing menace of Pump and Dump schemes touting often worthless stocks. The suspension of stocks pushed in the emails is just one prong of the agency’s strategy. SEC officials are working with foreign regulators to identify the perpetrators and, presumably bring them to justice (good luck).
The SEC estimates that 100 Million Pump and Dump Spam messages are sent per week, resulting in millions of dollars in profit for the spammers.
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