These Websites Are Frauds
Reuters broke an interesting story today…
The Securities Exchange Commission is investigating financial websites and authors for pumping stocks for their own profit.
You’re probably familiar with some of them.
The list includes Seeking Alpha, Benzinga, Wall Street Cheat Sheet, Equity Options Guru, The Swiss Trader, Trading Maven and Wonderful Wizard.
These authors and outlets were allegedly paid in secret to post hundreds of bullish articles about public companies.
Galena Biopharma, ImmunoCellular Therapeutics, and Lion Biotechnologies were among the companies accused of wrongdoing and agreed to pay more than $4.8 million in fines and legal costs to settle the dispute.
I recently wrote about my own interaction with the SEC, which called me last spring. Their interest in my article about Pineapple Express makes a lot more sense in light of these charges.
Indeed, I was specifically asked if Pineapple Express gave me any kind of compensation for writing that article.
I did not.
And I would never do that. No one here at the Outsider Club would.
We do not take bribes from companies to pump their stocks. Nor do we recommend our readers buy stocks that we own.
It’s unethical, and in some cases, illegal.
It’s also counter to our mission.
We call ourselves the “Outsider Club” because that’s what we are. We’re outsiders. We are not beholden to Washington DC or Wall Street. There’s enough crooks and fake news in the world.
We’re here to help.
After making this investigation public, the SEC issued an alert warning investors that they should never invest based solely on information published on a financial news website.
That is 100% accurate. Even when it comes to the stocks we cover here, the responsibility is on each and every individual investor to follow up with their own due dilligence.
Always be skeptical. Always question authority. We do. And we’re not going to bullshit you about it.
Jason Simpkins is a ten-year veteran of the financial publishing industry, where he's served as a reporter, analyst, investment strategist and prognosticator. He's written more than 1,000 articles pertaining to personal finance and macroeconomics. Simpkins also served as the chief investment analyst for a trading service that focused exclusively on high-flying energy stocks. For more on Jason, check out his editor's page.
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