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Aggressive investigation and prosecution, in conjunction with increased concentration on investor education, is the only way to stem the rising tide of these fraudulent practices. This is not to say that fraud exists in the entire securities industry or even the entire micro-cap area. The vast majority of those in the securities business are honest professionals. However, the testimony that was elicited at these hearings proves that many brokers are anything but professional or honest -- they are less concerned with researching stocks and mking appropriate recommendations then they are with charting their own sales and commissions.
Hopefully, as a result of the Attorney General's hearings and recent enforcement actions, potential investors will not feel pressured into blindly sending money to an aggressive, glib, demanding voice on the other end of the phone promising quick, easy profits and will avoid risking their savings in an unsuitable or possibly fraudulent investment. Indeed, one investor who was receiving four to five cold-calls each week testified that his weekly harassment all but disappeared since the public hearings began.
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