I recently sent a question about DoublingStocks to Lynn Edgington of Eagle Research Associates since Eagle Research specializes in investment scams and I’ve been baffled as to how the Doubling Stocks site has been able to thrive for so long – especially in light of the many reviews that call it out for what it really is and point out all kinds of problems with it in one review after another.

As expected Lynn was able to shed much more light on how and why DoublingStocks has been able to survive and thrive with impunity up to this date. Here’s what he said:

Information from Lynn Edginton of Eagle Research Associates about how DoublingStocks.com stays alive:

“Paul:

In regard to your inquiry about doublingstocks.com, I want to share with you some information we have gathered over the years about Penny/Pink Sheet stocks and these type of programs; as well as responding to your specific question:  Why hasn’t anything been done about them?

One of the harsh realities of dealing with anyone in the Penny, a/k/a Pink Sheet stock arena has been this truth:  “Penny stocks are known to be the arena of crooks, pump and dump stock fraud, conmen and scammers.” Since the reporting requirements for Penny stocks are so lax and different than for OTC and other publicly traded companies, it is not unusual for a Penny stock company not to file any financial statements or 10k reports. Another reality is the SEC does not have the manpower, time, resources or money to police this market.  Their position is you trade in Penny stocks at your own risk.  The only way the SEC or any other regulatory agency is going to get involved in a Penny stock scam is if it can be proven money is being funneled into terrorist countries or terrorist organizations.  Otherwise the investor is pretty much on his own in this arena.  Now that you have a backdrop of this market and how it operates, let me address your question regarding doublingstocks.com.

First, the owner resides in the UK.  While he gives a U.S. address and phone number, no such U.S. address and phone number exists.  On one of the websites it does, however, show a phone number for the UK.

The websites are hosted offshore, and since he is not offering securities he is not subject to the SEC and U.S. laws.  While he does solicit U.S. citizens to participate, he is offering a service that promotes stock picks.  Even though he uses what could be deemed deceptive advertising in his sales/marketing E-mails and website, it is a fine line, but not illegal.  Since it is a service business, the dollar amounts just aren’t there, and not enough people are complaining here in the U.S. for the FTC to take action, which is the only agency that would have jurisdiction.

It does not mean that someone who gets taken by this program can’t sue him personally.  Of course with him being in the UK, it would be difficult, but not impossible to do.  It would be expensive, so the dollar amount lost would have to be exorbitant to make it feasible to sue.  His safety is the dollar amount involved is so low, it is not worth the cost to file a personal suit, nor for any government agency to take any action.  Thus why he continues to do what he does.  The only way to stop him is to stop buying his hype and participating.  Bombard the forums warning people not to join, and that will have more impact than anything else anyone can do at this time.”

I highly recommend you regularly visit Eagle Research Associates at : EagleResearchAssociates.org