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World Trade Financial Corp., a brokerage specializing in over-the-counter and penny stocks, has been nailed by both the Securities and Exchange Commission and independent Financial Industry Regulatory Authority.

First, the regulatory authority fined the firm and fined and suspended three of its functionaries for unlawfully selling securities for their customers without a registration statement in effect.

The stock they peddled was a little-known, thinly-traded pink sheets stock named iStorage. The brokerage appealed the authority's findings to the SEC which stood by the regulatory authority.

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Comments

Gekko4321 Feb. 8, 2012 @ 11:07 a.m.

Penny stock brokerages are still around??? I must be naive. I've been in financial services for over 20 years and I thought these guys died out in the 90's. Dont get me wrong, I know the 'touts' are out there, but a full blown penny stock firm? There are so many regulatory hoops now to get thru I am surprised they are able to operate.

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Don Bauder Feb. 8, 2012 @ 2:08 p.m.

This is a kind of specialized penny stock firm but it boasts on its website that it concentrates on OTCBulletin Board and pink sheet stocks. Can't get any junkier than those. The particular stock in question was a penny stock that went down sharply. Best, Don Bauder

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