Article Title
An Uphill Battle: The Difficulty of Deterring and Detecting Perpetrators of Internet Stock Fraud
Document Type
Note
Publication Date
12-2001
Publication Citation
54 Federal Communications Law Journal 165 (2001)
Abstract
This Note argues that because of the limited resources of the SEC, the demanding requirements to prove misrepresentation, the current lack of cooperation between federal and state securities regulators, and a perverse admiration for fraud masterminds, illegal stock price manipulators will continue to profit from unsuspecting investors. Various measures to curb Internet fraud, however, are currently being pondered by industry experts. Among the most effective and realistic are, in order: increasing investor education and awareness, increasing the SEC's "firepower," increasing penalties and jail time for offenders, furthering coordination of federal and state efforts, and creating a "seal of approval" for traders and brokers. Absent an increased effort in a combination of some or all of the proposed solutions, Internet stock fraudsters will continue to exploit the "easy pickings" created by Internet investors.
Recommended Citation
Hittle, Byron D.
(2001)
"An Uphill Battle: The Difficulty of Deterring and Detecting Perpetrators of Internet Stock Fraud,"
Federal Communications Law Journal: Vol. 54:
Iss.
1, Article 8.
Available at:
https://www.repository.law.indiana.edu/fclj/vol54/iss1/8