According to the Securities and Exchange Commission, two British teenage twins were running a massive scam, touting a robot that could pick penny stocks. With 75,000 investors falling for the lies, Peter Leeds, author of "Invest in Penny Stocks," reported their actions to authorities, and forwarded massive amounts of research and proof to the S.E.C. in a bid to stop their dishonest scam.
Raleigh, NC -- (SBWIRE) -- 05/01/2012 -- The S.E.C. reports that John Hunter and Thomas Hunter, twin teenagers from England, were running a massive scam in penny stocks by claiming they had a robot that could pick penny stocks profitably. With 75,000 victims falling for their online lies, the authorities have finally brought charges against the two with the case labelled SEC v. Hunter et al, U.S. District Court, Southern District of New York, No. 12-03123.
One of the most active opponents to the Hunter scam was always Peter Leeds, authority on penny stocks, author of "Invest in Penny Stocks," and publisher of the world's most famous micro-cap newsletter, "Peter Leeds Penny Stocks."
Leeds encouraged many investors in penny stocks who were burned by the scam to report it to the S.E.C. He also reported the scam himself, along with links, letters, stats, and details that would expose and hopefully end the scam.
"Investors would come to us by the dozen and lay out how the scam had tricked them, and we always encouraged those individuals to report the scam," states Leeds. "The worlds of the best penny stocks and this blatant scam had crossed paths, and we did what we could to put an end to this imaginary robot."
"Before the scam was a robot that picked penny stocks, it was actually a robot that played poker," explains Leeds. "You can even look at archived web pages of the scam before they decided to make it about penny stocks."
Leeds confirms that he also sent the archived links to the S.E.C.
"One problem with this scam was that it stretched from overseas. We had to report it to special international departments that watched the scam from beyond the borders of America."
Leeds goes on to mention that, "the problem isn't the scam. The problem is that people actually believe this stuff! There's not 75,000 victims, there's 75,000 people who should know better. I'm always amazed at how so many people buy into the dishonest stuff out there, whether it has to do with penny stocks or otherwise. Of course there isn't a robot that is picking penny stocks!"
"A scam is a scam. Scams come in all forms, but every scam comes down to the same thing. Liars lie, and desperate victims believe what they want. Whether the scam is in penny stocks, or swampland real estate in Florida, it's all the same concept."
Leeds mentions that the best way to avoid a scam in penny stocks is to avoid any penny stocks you hear about for free. Also, only buy the high quality types of penny stocks like the fundamentally solid ones that Peter Leeds and his penny stocks team profile for subscribers of their penny stocks newsletter.
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