Fraud Schemes in Online Investment Newsletters

Fraud Schemes in Online Investment Newsletters

Online investment newsletters often share valuable information about investing, however sometimes these newsletters are used as tools for fraud. It is legal for companies to pay online investment newsletters to recommend their stocks, so long as the newsletter discloses certain information about the paid advertisement.

A fraud scheme in an online investment newsletter involves the newsletter’s creator lying or misleading readers about the payments received from companies whose stock they recommend. For example, a fraudulent investment newsletter may claim to offer an independent analysis of the stock it’s recommending, but in reality it is being paid to make the recommendation and is profiting from the missing or fraudulent information.

Federal securities laws require that the investment newsletters disclose specifically:

  • Who paid them for making the stock recommendation.
  • The amount paid.
  • The type of payment that was made (cash, stock, or something else of value).

It is not sufficient for an online investment newsletter to state something to the effect of “our Newsletter receives fees from the companies we write about in our newsletter,” or “our newsletter may receives compensation form companies we write about.” In the absence of the above listed disclosures, the newsletter may be in violation of federal law and could potentially become the subject of an investigation for fraud.

Individuals and companies who publish online investment newsletters must be careful not to run afoul of federal securities laws. Particularly if they are publishing articles written by third-parties. In some instances fraudulent online investment newsletters have appeared on legitimate, well-known websites. Sharing an opinion on what stock to invest in based on a reasonable independent analysis is legitimate, but touting stocks after being paid to recommend them requires specific disclosures.

Minimize Your Risk of Conviction

If you have been charged with fraud in relation to an online investment newsletter, or any online fraud, we have the resources and experience to protect your rights and minimize your risk of conviction.

Our law firm has extensive experience with white collar criminal defense at the federal, state, and local level. We have the resources to perform an independent analysis of your situation, we have the experts needed to reveal weaknesses in the case against you, and we will vigorously protect your constitutional rights. Fraud schemes often involve complex legal challenges, voluminous evidence, and bureaucratic mazes that can be overwhelming unless you have experience with them. We do. We can be your guide and your advocate against aggressive prosecution from Arizona investigators, the DOJ, FBI, IRS, SEC, or any other government agency.

Contact us for protection against these opponents. We will defend your rights and your freedom.

We practice excellence, one client at a time.



The attorneys at Ashley D. Adams, PLC handle state criminal cases throughout Arizona including the cities of Phoenix, Scottsdale, Glendale, Mesa, Tempe, Ahwatukee, Maricopa, Gilbert, Peoria, Surprise, Goodyear, Litchfield Park, Avondale, Chandler, Casa Grande, Florence, Queen Creek, Deer Valley, North Pinal and Sun City as well as those living in and around Maricopa County, Pinal County, Pima County, Yuma County and Yavapai County.

The attorneys at Ashley D. Adams, PLC handle federal criminal cases throughout the United States, including Arizona, Oklahoma, Utah, and California.