Background Checks

When investors begin their homework on small-cap companies – particularly on penny stocks – they should probably start with an important history lesson. Specifically, they should conduct background checks on their stockbrokers and the companies those brokers are touting.


The Street Sweeper has designed a cheat sheet of sorts to help out with this research. Our “Rap Sheet” section links to a free tool (sponsored by FINRA) that allows ordinary investors to review the backgrounds of individual stockbrokers and their brokerage firms. The section also links to whistleblower cases and class-action lawsuits targeting publicly traded companies. It provides access to recent news of SEC enforcement actions and FBI white-collar crime investigations as well.
Together, these tools should help investors determine whether their brokers – and the stocks that they are selling – actually pass the “smell test.”

Broker background checks:

Whistleblower cases: 

Class-action lawsuits: 

SEC Enforcement Actions/Litigation Releases 

FBI White-Collar Crime Investigations: