Details from AP
Link to S.E.C. Web Site
(3/22/99)
Victims of internet stock fraud told a congressional committee their
personal horror stories today, in the first of two days of testimony.
In a senate governmental affairs subcommittee hearing, two victims told
about reading offers of investment opportunities in new companies on the
internet.
Each invested some of their savings, only to learn that claims about the
companies were false.
Galen O'Kane of Maine lost about $20,000 he invested in
a stock touted in an on-line newsletter.
He says, "The other advice I would offer is to acquire advice from a reputable
stock adviser. Many bulletin boards on the web are full of information
from sources that are not looking out for your best interests."
Kristin Morris of Virginia testified about the lesson she's learned from
her on-line investment losses.
"My advice to anyone looking to purchase stock over the internet, is just,
don't. It is not worth the risk. An average investor, like myself, has
no way to verify whether the stocks they are interested in are fraudulent
or not. Until there is a solid, verifiable way to confirm the legitimacy
of a stock, I just say don't do it."
The Securities and Exchange Commission is urging investors to read its
Cyberspace Alert, available on the investor assistance and complaints
link of its web site at www.sec.gov.
