WARNING! 'Short and Distort' Crime
The "short and distort" is a known scam that is being actively prosecuted. A "short and distort" scammer first short-sells the stock, and then fraudulently attempts to lower the stock's price via posting criticisms or negative predictions about the stock's business, products, management, alliances, etc. The scammer then covers their short position buying back the stock at a lower price to gain a profit. The crime is when the investor benefits financially by posting negative posts with the intention to harm the credibility and trust of a publically traded company, its stock, its products, and/or its management. Litigation can be brought against anyone suspected of such fraudulent activities.

REGULATION: Short and Distort manipulators are being targeted--especially in the the category of stocks most often associated with this scheme---pink sheet and OTC stocks. In general, penny stocks have been the target of heightened enforcement efforts.



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Des W Woodruff

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Des W Woodruff


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