Thursday, May 5, 2005
Would you use a stock tip left on your answering machine by someone who you didn't know? Would you think it a wrong number and jump at the opportunity? If you would - - think twice. It seems that SEC just filed a suit against telemarketers who they believe were leaving "wrong number" stock tips. The SEC press release states:
"The messages, which were left on telephone voicemail recording machines throughout the country, were designed to make each recipient believe the caller had dialed the number by mistake. Many of the messages were left by a woman calling herself "Debbie," and sounded as if she had misdialed when calling a friend to pass along a hot stock tip."
So where's the harm. Well here is what the press release says about the alleged "wrong number" scheme:
"The complaint alleges that the messages were part of a larger scheme enabling Houston-based stock promoters to sell approximately $4.5 million of one of the touted stocks through a Tampa, Fla.-based broker-dealer. The scheme drove up the price of each of the touted stocks, temporarily inflating their combined market capitalization by approximately $179 million."
You have to admit -- this one is different!