The U.S. Securities and Exchange Commission (SEC) has suspended trading for 35 companies that allegedly benefited from spam e-mail campaigns to hype their stocks.
The SEC stated in a news release on March 8th that “This is the largest number of companies (35) ever suspended at one time for having their stock hyped by spam”. The suspensions, which will last for 10 business days, are part of a stepped-up SEC effort called Operation Spamalot aimed at protecting investors from potentially fraudulent spam campaigns hyping small-company stock, the SEC said. The e-mails used phrases such as “ready to explode,” “ride the bull” and “fast money.”

The 35 companies have been quoted on the Pink Sheets over-the-counter stock service. They are not listed on any exchange or on the OTC Bulletin Board, the SEC said.
The SEC estimated that 100 million such stock-trading e-mail messages are sent each week, often triggering dramatic spikes in share prices and trading volumes before the spamming stops and investors lose their money, the SEC said.

“When spam clogs our mailboxes, it’s annoying,” SEC Chairman Christopher Cox said in a statement. “When it rips off investors, it’s illegal and destructive. Today’s trading suspensions, and actions that will follow, should send a clear message to spammers: the SEC will hold you accountable.”

The SEC said it continues to investigate the source of the spam. Please read the SEC Press Release regarding this action:
http://www.sec.gov/news/press/2007/2007-34.htm
Please read other related stories:
http://www.cnbc.com/id/17517940
http://www.forbes.com/security/2007/03/08/sec-spam-stock-tech-security-cx
http://www.marketwatch.com/news/story/sec-suspends-trading-35-penny/story.
http://www.theregister.co.uk/2007/03/08/
http://news.morningstar.com/news/ViewNews.asp?

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