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SEC TAKES AIM AT HEDGE FUNDS
Posted by: Robert Rex
December 28, 2011

After overlooking the Madoff Ponzi scheme that cost investors $20 billion dollars, the SEC has decided to investigate hedge funds that tout inordinately high returns.

In a recent article in the Wall Street Journal, the SEC announced a new program targeting over 100  hedge funds that advertise returns that appear to be too good to be true. Encouraged by recent results the SEC has decided to apply its computer based analysis to mutual funds and private equity funds. 

The SEC computer system is designed  to detect returns that barely budge when markets are volatile. Such a system might have set off alarms inside the SEC about Madoff instead of letting him run his scheme for so long. The SEC has been criticized for failing to identify the Ponzi scheme and for its failure to respond to whistleblowers and their warnings that Mr. Madoff's operations were a fraud. 

Investors should be wary anytime they are offered opportunities that seem extraordinarily good in comparison the the rest of the market. Over the years we have noticed than many of the victims we represent were enticed into investments that were just too good to be true. 

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RUDY RUETTIGER AND 12 OTHERS CHARGED IN PENNY STOCK SCHEME
Posted by: Robert Rex
December 27, 2011

To many, Rudy Ruettiger is a hero who is known for overcoming great odds to become part of the Notre Dame folklore. However, the SEC recently charged Daniel "Rudy" Ruettiger and twelve others in a pump and dump scheme involving the stock of Rudy Nutrition. They claim he is a penny stock promoter and scammer.

Ruettiger has agreed to pay over $300,000 to resolve the SEC's claims that he and other fraudulently induced investors to bid up the stock of his sports drink company, Rudy Nutrition. The SEC found that the promoters had earned over $11 million in illicit profits by making false claims designed to increase the value of the company's stock.

The "pump and dump" scheme is just one of ruse's we have seen over the years to cheat hard working people out of their hard earned dollars. If you have questions about your broker or your brokerage account, please give us a call at 561 391 1900 or visit our website at www.dmrslaw.com .

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