Pump and Dump Scheme Lawyer

Some of the smaller and dumpier brokerage firms have brokers that like to talk up a stock to get their clients to buy a position in it, usually a “penny stock” valued at less than $5.00 per share, after they’ve bought shares for themselves. Enough investors get the bug and buy the stock, and the broker will watch their shares soar in value and dump them before selling you out of your position, putting you at a disadvantage. Such is also known as “front running” or getting a profit by stepping ahead of a client.

If your broker is going nuts about some stock that you never heard of, beware. If you’ve lost a lot of money on a crap stock after such hype, you need to pursue claims in FINRA arbitration if you want to recover any of it.