The longer you invest, the greater your likelihood of running across investment fraud. According to the Securities Investor Protection Corporation, regulators estimate that $10 billion to $40 billion is lost to investment fraud in the U.S. every year. The firm attributes $1 billion to $3 billion of that total to microcap stock fraud. One of the most well-known cases of microcap stock fraud is that of Jordan Belfort, whose memoir, The Wolf of Wall Street, was adapted into a film in 2013. He plead guilty to fraud in connection with his firm Stratton Oakmont, a boiler room which marketed penny…
The Biggest Frauds And How To Avoid Such Schemes: Microcap Stocks
Michelle deBoer-Jones
Michelle deBoer-Jones is editor-in-chief of Hedge Fund Alpha. She also writes comparative analyses of stocks for TipRanks and runs Providence Writing Services. Previously, she was a television news producer for eight years, producing the morning news programs for NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spending a short time at the CBS affiliate in Huntsville.