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FINRA Investor Alert: Nutraceutical Stock Scams

FINRA has issued its latest investor alert about stock scams that promise above average investment returns for investments involving what might seem like pharmaceutical companies, but are actually holistic or nature based remedies. These investments can include anything from enriched foods to energy drinks to dietary supplements.

FINRA is warning that many of these scams are being targeted at individual investors through e-mail, phone and fax invitations. Frequently, promises of exaggerated return attempt to create interest in an otherwise thinly traded stock with little to no financial success or historical return. As FINRA reports, many of these scams suggest quick and exponential growth, arrive unsolicited and are typically unexpected. They also typically project grown based upon other well established companies.

Investors are cautioned to consider the sources of the solicitation, to thoroughly review the SEC filings for any company suggested and to make sure that there is a familiarity with the representative or broker making the recommendation. Once again, it is important to engage in due diligence before undertaking any investment. Do not fall for a slick presentation and end up losing your money.

If you or someone you know has been the victim of an investment scam or suffered a loss because of poor advice from your stock broker or investment advisor, contact the securities arbitration attorneys at Penzien & McBride, PLLC for a review of your situation.

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