Sales of stocks by stock brokers that trade on the Pink Sheets or Over-the-Counter Bulletin Board system (market centers that trade very low priced stocks, often below $1 or 1 cent share) are highly regulated by the SEC and FINRA.  For example, these are stocks whose symbol requires a “.OB” or “.PK” at the end when looking them up on Yahoo Finance.  The Pink Sheet market even issues warnings on certain stocks as they may have been subject to a “pump and dump” scheme or other fraud.  Your broker, broker-dealer, and the broker-dealer’s clearing firm has access to this information. 

Stock Broker Fraud Attorneys

Investing in these stocks is risky and should only be for investors willing to accept substantial losses as a result.  Stock brokers recommending these securities that are not in line with your risk tolerance and investment objectives or permit your purchases despite fraud warnings assigned to respective stocks may be liable for your losses.  Call the stock broker fraud attorneys of the Securities Law Firm of Menzer & Hill, P.A. for a free consultation.

Return to Cases/Investigations