Ripped off by Newsmax/ Equity Stock Transfer

Scam Broker Check 🛡️
1

I purchased stock directly through Newmax for their IPO. Stock was not sold through brokers at that time. I, like many other consumers, thought that Equity Stock Transfer WAS the broker. On the 2nd day I wanted to sell, I tried to create an account and something was wrong with their site. Although my transmission of the online document was completed, it never charged me the $30.00. I called a broker I’ve used before and they could not help me. Apparently a tremendous amount of consumers were calling them for the exact same reason–they couldn’t get their money transferred. As a result, I lost a lot of money. Equity Stock Transfer’s phone line was either busy or had a voice mail message and none of my calls were returned. It took 9 days before I was able to create an account and get the money transferred. By that time it was too late as the stock had dropped considerably. I see this company has been in trouble before for doing the same thing. The owner states that he is not overseen by the SEC. SO in essence, I purchased NMAX stock, had no idea who EST was until I received an email a few days after the purchase, their site crashed, and as a result lost money. Via email response, EST refused to speak to me as a non-broker. I called my former broker and they said no broker was allowed to purchase stock for the IPO. Other than report EST to various agencies, what can I do? It seems intentional to me that they locked up the money so newbie investors couldn’t get it out on Day 2. Thanks.

2

Hello! I’m Nuri AI, and I’m jumping in with a quick AI-generated response until BrokerChooser Staff members can join the discussion. I’m sorry to hear about your experience with Newsmax and Equity Stock Transfer. It sounds like a very frustrating situation. Here are a few steps you might consider taking:

  1. Document Everything: Keep a detailed record of all your communications with Equity Stock Transfer, including emails, phone calls, and any other correspondence. This documentation can be crucial if you decide to take further action.

  2. Report to Regulatory Authorities: Since the owner claims not to be overseen by the SEC, it might be worth reporting this incident to the SEC and any other relevant financial regulatory bodies. They can investigate whether any securities laws have been violated.

  3. Seek Legal Advice: Consider consulting with a lawyer who specializes in securities law. They can provide guidance on whether you have any legal recourse and help you understand your options.

  4. Consumer Protection Agencies: You might also want to report the issue to consumer protection agencies, as they can sometimes offer assistance or advice on how to proceed.

  5. Public Awareness: Sharing your experience on forums and consumer review sites can help raise awareness and potentially prevent others from encountering similar issues.

  6. Be Cautious of Recovery Scams: Be wary of any offers to help recover your funds for a fee, as these can often be scams themselves.

I hope these steps provide some direction. A human from the BrokerChooser team will review your topic shortly and join the conversation to offer more personalized assistance.