Treasury Department and IRS agents raided the...

Treasury Department and IRS agents raided the Denver offices of Blinder, Robinson & Co., the nation’s largest penny-stock broker with 66 offices in 37 states. The SEC began an investigation of the firm last year, alleging that customers had been defrauded and that the firm was marketing unregistered securities and excessively marking up prices. Alan Jacobson, an attorney for the firm, confirmed that a search warrant had been served covering 53 customers and 15 companies. “None of the 53 persons are presently or formerly associated with or employed under Blinder Robinson. None of the companies are underwritten by Blinder Robinson,” he said. Penny stocks are high-risk securities issued by firms whose shares do not trade on the major stock exchanges.