The Financial Industry Regulatory Authority is warning of potential fraud related to low-priced securities offerings — including those involving COVID-19- and cannabis-related businesses.
In the just-released Regulatory Notice 21-03, FINRA notes that it has observed “potential misrepresentations about low-priced securities issuers’ involvement with COVID-19 related products or services, such as vaccines, test kits, personal protective equipment and hand sanitizers.”
These misrepresentations, FINRA states, “appear to have been part of potential pump-and-dump or market manipulation schemes that target unsuspecting investors.”