Porter Stansberry founded Stansberry Research, a financial investing firm, in 1999, according to the company's official website. However, the U.S. Securities & Exchange Commission sued Stansberry in 2003 for defrauding investors, and the agency ordered him to pay $1.5 million in restitution and civil penalties, notes U.S. News & World Report. The SEC argued Stansberry used false stock information in a financial newsletter to defraud customers.Continue Reading
Litigation over the false stock information lasted four years, from 2003 to 2007, reports The Baltimore Sun. In a 49-page ruling, U.S. District Judge Marvin J. Garbis stated Stanberry's conduct "undoubtedly involved deliberate fraud" after he made statements about a stock he knew were false. The lawsuit focused on a newsletter called "Special Report" and accompanying emails that advertised the information. The newsletter claimed customers could pay $1,000 for a stock tip revolving around USEC Inc., an energy company based in Bethesda, Maryland. More than 1,200 people bought the report, and 215 received refunds after complaining.
An email advertising blast published in 2012 by Stanberry's company claims President Barack Obama would somehow win a third term as president, even though the Constitution of the United States forbids more than two terms, according to Mother Jones. A slideshow that accompanied the email, narrated by Stansberry, claimed to explain a secret plan to maintain power through 2020 by implementing socialist policies.Learn more about Investing