A Tip About Gold

Home » Legally Speaking Posts » A Tip About Gold

Q: “Gold has been discovered in Surinam,” said my broker.  “This company has options on thousands of acres.  I know the president.  When this information goes public, the stock will quintuple!”

We contacted the president and inquired whether this tip was accurate; he would neither confirm nor deny the tip, but said that our broker was a very trustworthy and good man.  Believing that our broker was privy to information not otherwise available to the general public, we purchased the stock.

Initially, our shares increased dramatically in price.  Then, the mining venture collapsed, and our shares declined to well below the purchase price.  In retrospect, I think that our broker and the president were conspiring to trick us into purchasing the stock – by divulging false and incomplete information on the pretext that it was accurate.

A: What did you think when you decided to act on this so-called insider tip?  To trick an existing shareholder into selling his stock?  Because he was in the dark as to something that, strangely, the president was willing to let you know?

Even if you are not as white as snow, and even if you were a fool, that does not stop you from bringing a lawsuit – because the public interest is best served by allowing you to expose your broker’s illegal practice.  You will then need to prove that your broker intentionally made a material misrepresentation or omission.

By: Scott Baron,
Attorney at Law Advertorial

The law responds to changed conditions; exceptions and variations abound. Here, the information is general; always seek out competent counsel. This article shall not be construed as legal advice.

Copyright © 2014-2020 Scott Baron & Associates, P.C. All rights reserved. 159-49 Cross Bay Boulevard, Howard Beach, New York 11414 1750 Central Park Ave, Yonkers, NY 10710 718-738-9800, 914-337-9800, 1-866-927-4878