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What Are the Signs of a Nutraceutical Stock Scam?

Learn more about a recent FINRA alert regarding nutraceutical stock scams from an experienced investment fraud attorney with Meyer Wilson.

The Financial Industry Regulatory Authority (FINRA) recently alerted investors to the potential for investment fraud in the growing field of nutraceuticals. FINRA is concerned that some of these companies, which may promote a wide range of products that includes everything from health drinks to vitamin supplements, may actually represent a classic “pump and dump” investment scam. Although FINRA points out that not every nutraceutical company is a fraud, it is recommended that you pay attention to these signs of a stock scam:

  • The company is small and does not have a successful history.
  • The offer is based on “exclusive rights” to a treatment or relies on a newly discovered medicinal herb or technique.
  • The nutraceutical investment promises huge returns over a short period of time.
  • The offer comes unsolicited via phone, email, text message, tweet, etc.

For more information about spotting stock scams and financial fraud, please see our helpful book Five Signs of Investment Fraud…And What to Do if it’s Happened to You, which was written by an experienced investment fraud lawyer and is available to you for free. Just give us a call or use our online contact form to request your copy.

Meyer Wilson represents harmed investors nationwide in stockbroker mediation, arbitration, and litigation after suspected fraud or broker misconduct. If you have suffered losses or suspect a scam, give us a call today to schedule a completely free and confidential legal consultation with one of our experienced investment fraud attorneys.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

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