WASHINGTON, March 9 (UPI) -- The U.S. Securities and Exchange Commission suspended trading in 35 companies whose shares were promoted in spam e-mails to unsuspecting investors.
The suspensions, part of the SEC's Operation Spamalot, which began last fall, is intended to protect investors from fraud, the agency said. It will last for 10 business days, through March 21.
Shareholders lost millions of dollars in the past year biting fraudulent Internet offers to "ride the bull" or win "fast money" by buying thinly traded stocks, agency officials said.
They continue to investigate it the spam came from third-party stock promoters, corporate insiders or both, The Washington Post reported.
"When spam clogs our in-boxes, it's annoying. When it rips off investors, it's illegal and destructive," SEC Chairman Christopher Cox said.
U.S. computer users face at least 100 million spam e-mails hyping stocks each week, and the number continues to rise steadily, said Oxford University law professor Jonathan Zittrain, who has researched the issue.
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