In December 2011, the federal government suspended trading at seven US investment firms for allegedly participating in penny stock fraud. Penny stock fraud occurs when investment advisers or stockbrokers act negligently by encouraging investors to buy stock in small companies that are not traded in the major markets. Criminal charges have been filed against numerous defendants throughout 10 different states including mail fraud and wire fraud.
Leading Ohio investment fraud law firm Meyer Wilson discusses the case and names the firms involved on their website.
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