The FBI was not involved in the Stansberry investment scam, but the Securities and Exchange Commission (SEC) was involved. The SEC brought a complaint against Frank Porter Stansberry, Angora, Inc and Pirate Investor, LLC in relation to securities fraud.
The complaint was dealt with in the United States District Court for the District of Maryland, Baltimore. The SEC indicated that the defendants were engaged in a fraudulent investment scheme where they disseminated false information to the public in Internet newsletters. These newsletters were issued by Angora, or Pirate Investor, a wholly owned subsidiary of Angora. All three defendants indicated that they had insider information on certain companies listed on the Stock Exchange and so the readers would be able to make quick profits by paying a fee of $1,000 for the information. Many investors purchased the tips but the profits did not materialize.