| Fraud has dominated the penny-stock industry since its inception. However, the problem of these systemic criminal activities is rarely addressed. For the most part, criminal traders are investigated when they are involved in other unlawful activities, particularly narcotics and violent crimes, in addition to their regular fare of market manipulations and similar frauds. This paper analyzes the history of penny-stock fraud, and evaluates the regulatory mechanisms and government responses to the numerous criminal conspiracies which continue to plague the industry. |
Updated 05/20/2006