Pot Stock Scams Growing like Weeds

by Rachel Baker on August 20, 2013

Apparently now that marijuana is legal to some degree in 20 states, white collar criminals are starting to take notice, and looking for ways to rip people off:

The Financial Industry Regulatory Authority, Wall Street’s industry-funded watchdog, warned that scammers have been targeting investors attempting to tap into the growing U.S. marijuana industry.

FINRA said red flags for investors range from the classic “pump and dump” – in which con artists boost the price of thinly traded stocks by misleading investors about a company’s potential, then sell their shares at a peak – to executives with criminal records.


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