In a recent video Peter Schiff has accused the National Inflation Association of a “pump and dump” stock scam. The National Inflation Association was founded in 2009 and states its mission is “preparing Americans for hyperinflation.” NIA provides valuable information about the coming economic collapse and inflationary depression caused by excessive money creation by the Federal Reserve. But Schiff warns that NIA is using its legitimate rhetoric about the economic collapse to scam people in their newsletter by promoting stocks to pump up their prices so they can then be sold at a profit by someone paying NIA.
Watch the video:
As Schiff notes, the founder of NIA is Jonathan Lebed, who was prosecuted by the SEC in 2001 for a pump and dump stock scam. Through his pump and dump scam Lebed encouraged people to buy penny stocks he already owned so he could sell them for a profit at the expense of those people he encouraged to buy. Lebed was a minor at the time and negotiated an out of court settlement with the SEC. Lebed forfeited $285,000 in profit to the SEC without admitting any wrongdoing but was allowed to keep nearly $500,000.
NIA has come out with this response to Peter’s accusation, in which they defend their record and publish their past public stock suggestions with their percentage gains at their highs.
National Inflation Association:
NIA has always made it very clear that we are not investment advisors and our stock suggestions have been just that, suggestions. NIA has never recommended to its members that they buy or sell any stock. NIA’s stock suggestions have been 100% completely unbiased. NIA has NEVER once sold a single share in any of its stock suggestions. Let us repeat, NIA has NEVER once sold a single share in any of its stock suggestions.
(emphasis in original statement)
Schiff responded in the comments section of Economic Policy Journal with the following statement regarding NIA’s response to his accusations of fraud:
NIA responded to my video by raising a straw man. They claimed they did not “pump and dump” the stock since they did not personally sell any shares. However i never accused them of that. I alleged that a third party paid them to pump up the stock so the third party could sell their shares.
NIA also claims Peter Schiff’s brokerage firm is failing and will be out of business in a few years. Robert Wenzel of Economic Policy Journal stated the following regarding this claim:
I found this to be a suspicious claim and planned to ask them how they knew Peter’s firm was losing assets and failing. I suspected that wasn’t the case and that NIA was making the charge up.
And Schiff’s response to the claim was:
they accused me of running a failing brokerage firm that will soon be out of business despite the fact that my business has never been better. We have more clients, more revenue, and more profits than ever
Robert Wenzel said he will be reaching out to NIA to try and get more questions answered and find out what is really happening. Economic Collapse News will be standing by and reporting on the alleged National Inflation Association scam.