Who Falls Prey to the Wolf of Wall Street?

Seniors [are] particularly vulnerable to investment scams” read one headline. “We are taking further steps to find and eliminate from our system pump-and-dump scammers, those who prey on retirees,” noted Jay Clayton, chairman of the Securities and Exchange Commission. The news media, movies like “The Wolf of Wall Street,” and even regulators have long portrayed the elderly and other vulnerable people as the most frequent victims of these fraudulent schemes. Yet, do we actually know who invests in pump-and-dump scams? It is a critical question, because designing effective investor protection requires understanding who invests and why.… Read more