Regulators find lots of 'fake news' aimed at stock investors

April 10, 2017 - 3:59 pm

WASHINGTON (AP) — "Fake news" is not limited to presidential politics and conspiracy theories. Investors also have to be on the alert for stock promotions masquerading as unbiased reports online.

Federal regulators have brought civil fraud charges against 27 businesses and individuals for deceiving investors into believing they were reading independent, impartial analyses of stocks on websites.

The Securities and Exchange Commission said Monday that the writers were secretly paid for writing the bullish articles.

The agency said in a series of orders and lawsuits that more than 250 articles had false statements attesting that the writers hadn't been compensated by the companies they were writing about. One writer was said to have used at least nine pseudonyms as well as his own name.

AP Editorial Categories: 
Comments ()