As ECN reported, National Inflation Association was accused by Peter Schiff of perpetrating a pump and dump stock scam on its members. Several weeks ago Schiff alleged there was a National Inflation Association Scam when he received in his inbox a letter from NIA promoting the penny stock Mega Precious Metals (MGP).
Now George Hemminger (aka George4Title), a former co-founder of NIA has come forward, admitting to NIA’s pump and dump scam in an interview on the Peter Schiff Show.
An audibly uncomfortable Hemminger stated in the interview that he left the organization after the first stock promotion in which NIA charged $1000 to premium members for stock picks before then giving the recommendation to the rest of members.
Schiff called the scam front-running, stock manipulation, and insider trading, suggesting that also the premium members of NIA who paid $1000 for the stock picks beforehand could be charged with fraud.
Hemminger also revealed that other NIA co-founders including Gerard Adams had threatened to sue him and “get a judgment against me for everything I had.”
Hemminger felt he was compelled to come out with the truth about NIA stating, “what they’re doing is hurting people, especially if they’re not familiar with investing in stocks” and admitting that he himself has lost money in the promoted stocks.
Here’s the radio interview: