The New Jersey Bureau of Securities ("Bureau') is issuing a warning alerting New Jersey residents about a possible investment scam involving stock tips from strangers on your answering machine.
In recent days, hundreds of people across the country have received voice mail messages on their home answering machines from a female caller saying that the stock price of a small company is about to increase. The messages sound as if the caller thinks she is giving a "hot" investment tip to an old friend and doesn't know that she is leaving the message on the wrong answering machine. However, these messages are not a mistake at all. Instead, they appear to be part of a "pump and dump" scheme designed to trick as many people as possible into buying stock based on false information. Once the perpetrators of this type of scheme have created enough interest in the stock to raise the stock price, they sell their shares at a profit and stop promoting the stock - typically leaving investors who fell for their scam with little or nothing to show for their investment.
INVESTORS SHOULD NEVER BUY STOCKS BASED ON TIPS FROM STRANGERS.
If you receive one of these phone calls, please write down the following information:
- the company being touted;
- the exact date and time the call was received;
- the number called; and
- the number from which the call was made, if available.
Then call the Bureau at 1-866-838-6240 or file a complaint with us on our online complaint form, www.state.nj.us/lps/ca/bos/compform.htm, and provide us with this information, so that we can work to make sure that the perpetrators of this fraud can no longer victimize the people of New Jersey.