About

When I sued a number of junk faxers I discovered penny stocks. I read Steve Kirsch's fascinating research about Tom Heysek and the junk faxers, spammers and scammers.

Some people watch mysteries on TV, I'm watching the players in this market, the SEC's and Steve Kirsch's next moves, it's exciting!

Will the criminals go to prison?

Who wins? How?

Since I'm getting an incredible amount of stock spam, I decided to track some of the companies and especially the people who aggravate me. If/when the SEC and attorneys have a look at them, the documenation will be helpful.

How do you make money?

Saturday, December 26, 2009

Learned Jeremiah Hand and Wellstone Filter Sciences, Inc court order to remove all posts

This lawsuit is absolute proof that you should NEVER invest unless you have PERSONAL knowledge about the business and the PEOPLE in charge.

As per the court order, I’m NOT allowed to discuss the issues.

So let’s talk about investing in general.  As this SLAPP suit documents, you really can’t rely on the information provided in newsletters and at investment sites. 

I can’t possibly be the only person who got ordered to remove all NEGATIVE statements about Wellstones, the Hand clan and the Ceramis.  In fact, all the Wellstone discussions at other sites no longer exist.

So what’s left say?

You can pump a stock as much as you want.

Just don’t ever say anything BAD about a PUBLICLY traded company.

Of course that means that scammers and criminals are free to scam and scam and scam ... with impunity.

Very rarely does the SEC or a state AG take action.  Usually private citizens DOCUMENT the fraud.  Essentially, people have to do all the work, file lawsuits, hire private investigators and track the criminals down and THEN the government might finally step in.

Considering the state of the economy, the government corruption, the giant bailout fraud, the health insurance fraud ... I suppose we have bigger fish to worry about than pennystock scammers.

What’s really scary is that you can’t publish the truth anymore and that the judges are openly corrupt.

Today it’s Wellstone, tomorrow it’s Goldman Sachs.

What little I can say about the Wellstone Filter Sciences, Inc. and Learned Jeremiah Hand lawsuit against me is posted at http://liarsandcheats.info/reports/learned-hand-wellstone-defamation-suit/

Monday, May 25, 2009

The Art of Recom, MED, SGN, SGAL, Etc. Etc. Etc.

An interesting blog:

The Art of Recom, MED, SGN, SGAL, Etc. Etc. Etc.

Tuesday, March 24, 2009

Jack and Darrell Uselton SEC settlement

NO jail.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20961 / March 18, 2009
Securities and Exchange Commission v. Darrel T. Uselton and Jack E. Uselton, Case No. 07-2211 (S.D. Tex. filed July 9, 2007)

SEC Settles E-Mail Spam Campaign Case Against Two Texas Individuals

Two Texas men, who perpetrated a massive e-mail spam campaign to drive up the demand for low value stocks they owned, will pay nearly $4 million in penalties and fines and will no longer be able to trade penny stocks under an agreement reached with the Securities and Exchange Commission.

The agreement, which was entered today in the form of two final judgments by Judge Kenneth Hoyt of the U.S District Court in Houston, prohibits Darrel T. Uselton and his uncle, Jack E. Uselton, from violating antifraud provisions of the federal securities laws and trading in penny stock. Darrel Uselton also agreed to pay $2,838,866.72 in disgorgement and prejudgment interest and another $1 million in civil penalties.

According to the SEC initial complaint, the Useltons generated proceeds of more than $4 million by obtaining stock from at least 13 penny stock companies from May, 2005 through December, 2006. The duo would then, according to the SEC, sell those shares into an artificially active, and often-times rising, market that they created through manipulative trading, spam e-mails, direct mailers, and internet-based promotional activities.

The SEC determined that each of the market manipulations followed a similar pattern. Specifically, the Useltons and the companies they controlled received unrestricted shares from the penny stock companies for little or no money in return for purported financing or promotional activities. The Useltons then transferred those unrestricted shares into brokerage accounts they controlled. They then encouraged many of the penny stock companies to issue positive press releases. At the same time, the Useltons orchestrated spam e-mail campaigns using technology that would enable them to essentially instruct millions of computers to distribute their email so that it would appear as though the email was coming from a person whom the recipient might have known.

Darrel Uselton and Jack Uselton, without admitting or denying the allegations, settled the action by consenting to entry of a court order that: (i) permanently bars them from Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder; and (ii) prohibits them from participating in an offering of penny stock pursuant to Section 21(d)(6) of the Exchange Act.

In addition, Darrel Uselton consented to entry of a court order that orders him to pay disgorgement and prejudgment interest in the amount of $2,838,866.72, which will be deemed satisfied upon entry of an order requiring him to pay that amount in restitution to the State of Texas. It also requires him to pay a civil monetary penalty of $1 million.

In a related enforcement action, the Useltons are in the process of settling criminal charges originally filed by the Attorney General’s Office for Texas and the Harris County District Attorney’s Office (Houston, Texas) in July 2007 and have agreed to forego any right to $2,838,866.72 that previously was seized by the Texas criminal authorities from bank and brokerage accounts controlled by Darrel Uselton.

The Commission acknowledges the assistance of the Attorney General’s Office for Texas and New York, The Harris County (Houston, Texas) District Attorney’s Office, the Federal Bureau of Investigation, the Texas State Securities Board, the United States Attorney’s Office District of Colorado, the Financial Industry Regulatory Authority, the State of Oklahoma Department of Securities, and the National Cyber-Forensics & Training Alliance.

For additional information regarding prior Commission action in this investigation, see Litigation Release No. 20187 (July 9, 2007)

http://www.sec.gov/litigation/litreleases/2009/lr20961.htm

“the Useltons are in the process of settling criminal charges”

It looks to me like once again, crime pays.

The WORST that can happen is that you have to give back SOME of the profits?

Tuesday, January 06, 2009

Peter Leeds’ real name is Hornuck?

A reader submission received today:

Thanks for the Peter Leeds info.

“Lisa”, as I have been informed, is his wife.

His real name is not Leeds, it’s Hornuck.

Check out this other Peter Leeds scam:

Peter’s Promise (Now selling crap vitamins) at: http://www.orthomolecular.com

This guy has no morals, and “Lisa” has none either. She just loves the money.

I have no idea whether any of this is really true with the exception of the “vitamin” website, it’s real and by Peter “Leeds”.  But I don’t see anything for sale.  He even states that people should by vitamins at the store and that they’re all the same (FALSE!), so how does he make money off it?

-- it took me a couple of minutes, the Google ads can be VERY lucrative.  Obviously MANY readers will click on the very RELEVANT ads.  And that’s why he says the vitamins are all the same.

Friday, October 24, 2008

Updates and court docs on PrimeTV, Gatelinx, Gatelinx Global, GTX Global or GTXC VSTC.pk

Lots of info and court filings at this blog:

VSTC or Vision Technology Corporation… by any name, the gang that can’t shoot straight

A look, from the inside, at the stock scam that is (under various names and iterations) PrimeTV, Gatelinx, Gatelinx Global, GTX Global or GTXC. Now known as Vision Technology Corpporation (OTCBB symbol:VSTC.pk) with a relationship/alliance/ownership stake in SQL Minds. Whatever the name, THIS IS STILL A SCAM

A reader submitted this link about David Hagen and the GTX Global fraud, thanks!

Saturday, September 27, 2008

Spammer Peter Leeds threatens with suit after refusal to accept his bribe

Lisa’s latest email:

Ms. Baker,

You clearly do not understand the seriousness of the situation.  We have given you the opportunity to remove your slanderous commentary and you have replied by posting further slander accusing Peter Leeds of participating in spamming practices.

Our legal department will have to pursue other means for resolution as you are unwilling to rectify your conduct.

Govern yourself accordingly,

Lisa

Actually, I totally understand the seriousness of the situation.

Congress is about to gift another $700 billion dollars to the bankers as one of many more bailouts.

We’re in this dire situation because most people are just like Peter Leeds.  They lie and deceive and spam and scam.  They are so corrupt, they accept bribes and fail to publicize negative experiences with people and companies.  ALL big corporations and especially banks and brokerage firms require that the employees sign confidentiality agreements.

Whistleblowers are threatened, paid off or even ordered by federal judges to SHUT UP.

I didn’t sign a confidentiality agreement and I am looking forward to the first lawsuit over my publications. 

Back in the 90s, internet service provider Zoom.com tried to get a court order to make me remove my posts about their horrible service.  I found out about it when the local paper called and let me know that they didn’t get it.  About 10 years ago, free speech still existed.  Zoom.com went out of business a few months later. 

I’m SO looking forward to being sued for publicizing the truth and my opinion, I’m offering to accept service of the summons and complaint by fax to 571-222-1000.

Peter Leeds won’t have to pay a process server to serve the papers on me.

Of course I’ll file my counter claim(s).  At the very least, he owes me $50 for spamming my site.

I can’t wait to conduct discovery.

How much is Peter Leeds paying people to spam blogs and forums with links to his site?

What is Kim’s real full name?

What is Lisa’s real full name?

Could it be Peter Leeds?

I can’t wait to find out.

Peter Leeds desperately trying to get me to delete my FACTUAL post

Peter Leeds is a spamming thug and now “Lisa” thinks I can be bought for $50 and that I will DELETE this post:

-Peter Leeds - spamming and scamming with deceptive self promotions

NEWSFLASH:  I have NEVER deleted ANYTHING for payment.  I’ve been offered $10,000 and I refused.

Peter Leeds clearly is not very bright.  Offering me $50 for deletion of my work while he LEGALLY OWES me the $50 as per my clearly posted terms is an incredible act of stupidity.

This outrageous attempt to bribe me indicates that Peter Leeds accepts payments for promotions of stocks.  Just because Peter Leeds might promote a company for $50, he assumes that I can also be bought.  The scammers just can’t conceive that there are still a few people with integrity.

Here is my e-mail exchange with Lisa:

From:
To: “Christine Baker”
Subject: Re: PeterLeeds.com

Ms. Baker,

Your “opinion” places Peter Leeds under the heading “Penny Stock Fraud”.  We are in no way a company that participates in any form of fraud. 

You are publishing untruths on your webpage.  These untruths are appearing in search engines when Mr. Leeds’ name is searched. 

As you are aware, published content on a web page is subject to the same rules and regulations as any form of written material.  This means that your categorization of our company and the statements made concerning Peter Leeds must meet a standard of truth in order to be legally published.

Our request is that we pay any fee that you feel is owed to you and you in turn remove us from your webpage.

We have been in business for over 15 years and are aware of our rights in relation to slander and defamation of character. 

Thank you,

Lisa

----- Original Message -----
From: Christine Baker
To:
Sent: Friday, September 26, 2008 2:00 PM
Subject: Re: PeterLeeds.com

Lisa,

Several readers emailed to confirm my opinion.  You can certainly pay the $50 and I would update accordingly, but delete nothing.

Christine

--------------------------------------------------------

At 06:02 AM 9/26/2008, you wrote:

Ms. Baker,

I am not sure why you have taken such a negative stance against our company.  If it is a matter of the $50.00 owing to you we would gladly pay the fee.

I am writing to request if there is any way we can diplomatically resolve the situation.

Lisa

--------------------------------------------------------

----- Original Message -----

From: Christine Baker
To:
Sent: Thursday, September 25, 2008 11:37 PM

Subject: Re: PeterLeeds.com

I don’t think there’s anything to discuss.  I can’t be bought or intimidated.

Christine Baker

--------------------------------------------------------

At 08:34 PM 9/25/2008, you wrote:

Ms. Baker,

I am writing concerning a couple of posts that you have on your site concerning our company.  Can we discuss?

Thanks,

Lisa

Dumb, dumber and so dumb, it’s astounding that Peter Leeds is still in business.  And that’s proof that there’s a sucker born every second.

My reply to Lisa is this URL.

Wednesday, September 17, 2008

Attorney Phillip W. Offill (Consolidated Sports Media Group) license suspension

State Bar suspends lawyer Phillip W. Offill Jr.

Dallas attorney Phillip W. Offill Jr.’s law license has been suspended for conduct involving destruction or concealment of client files and concealing conflicts of interest.

Offill, 49, is prohibited from practicing law in Texas for three years, beginning May 1, and will be on probated suspension for two additional years. At the time of the conduct giving rise to the disbarment proceedings, Offill was a partner at Godwin Gruber LLP.

The Commission for Lawyer Discipline determined that Offill had violated rules of professional conduct by sending away a client’s original documents to eventually arrive at a trash dumpster, instead of giving the documents to the client as requested. The panel also found Offill had actual and potential conflicts of interest, which he misrepresented or failed to acknowledge.

Offill had been hired by Consolidated Sports Media Group to assist in raising capital and provide services to commence public trading of shares of Consolidated stock, which he had recommended as part of a general plan for fundraising.

A “blast fax” touting the company’s stock investment potential was published by one of Offill’s other clients and resulted in a lawsuit against Consolidated. The company terminated Offill in April of 2005 and demanded the return of all Consolidated files and corporate documents. Other demands for complete corporate records followed.

On the same day the lawsuit was filed in August 2005, Offill directed that certain original corporate documents belonging to Consolidated be sent to a friend and non-lawyer business associate of Offill’s in Kemp, Texas, where they were later discovered in a trash dumpster. The files found in the dumpster contained previously undisclosed, back-dated original documents that had served as the purported legal basis for unrestricted trading of Consolidated stock. The panel found that Offill either intended that the documents be concealed or destroyed, according to The State Bar of Texas.

Offill also has been ordered to pay to the State Bar of Texas $87,300 in attorney fees and expenses involved in the prosecution of the case.

Too little, too late.

It’s become rather obvious that the SEC doesn’t just ignore penny stock fraud, but failed on ALL levels.  Is there any department in the US governments that’s not corrupt?

It’ll be up to you to design and implement a better system with a true democracy after America hit bottom.  You might want to sign up for the Common Good Bank as future depositor or investor.  You won’t get rich overnight, but you also won’t get ripped off.

Monday, June 16, 2008

Multi BILLION dollar junkfax suit against Triple Play Stock Alert—Signallife

Monday, Jun. 16, 2008
Peter Strojnik, P.C. Files Class Action Lawsuit Against Triple Play Stock Alert

Lawsuit Alleges a Mass Distribution of Illegal Stock Promotion Faxes Subjecting Defendants to Liability Between $6 Billion and $18 Billion

PHOENIX — On June 16, 2008, Peter Strojnik, P.C. filed a proposed class action lawsuit against illegal stock manipulator Triple Play Stock Alert for transmitting between 12 million and 16 million unsolicited faxes in violation of the Telephone Consumer Protection Act. The Complaint alleges that Triple Play Stock Alert is a fictitious name used by stock manipulators who want to conceal their identity to avoid liability for their illegal activities. The suit was filed in the United States District Court for the District of Arizona under case number 2:08-cv-1116.

The Complaint identifies those who benefit by the illegal stock manipulation and the illegal mass faxes transmitted by Triple Play Stock Alert. In the Conspiracy Count, the Complaint alleges, “Plaintiff has identified two classes of stock manipulators who benefit by the illegal stock manipulation...Signalife, Inc. and/or Signalife’s insiders, officers, directors and/or shareholders.”

The complaint alleges that the illegal stock manipulators “are liable in statutory damages between $6 billion and $18 billion.”

“Damages in billions of dollars are possibly annihilating to these stock manipulators,” noted Peter Strojnik, a Phoenix attorney involved in the preparation of the lawsuit, “but Congress made a legislative decision authorizing such damages in order to stop the unlawful distribution of illegal faxes.”

The Complaint does not name Signalife or its officers, directors, insiders and shareholders as the “aiders and abettors” of the massive illegal fax scheme. “Who profited by the illegal scam?” quizzed Mr. Strojnik. “We will engage in discovery to determine who profiteered - or tried to profiteer - by the illegal fax transmissions, and we will know who the responsible parties are.”

For further information contact: Peter Strojnik, P.C., 3030 North Central Avenue, Suite 1401, Phoenix, AZ 85012, .

Peter Strojnik, P.C., Phoenix Peter Strojnik, 602-524-6602

Since the SEC does next to nothing and all too often settles its few investigations with payments to the SEC (not the defrauded investors), it’s up to attorneys to sue for junk faxes.  It sure would help if we had a spam law with teeth like the TCPA.

Saturday, April 26, 2008

SEC took bribe from criminals involved in TWTN - AHFI - CNDD fraud - NC AG sues

U.S. charges Quebec man with securities fraud

Peter Brieger, Canwest News Service
Published: Saturday, April 26, 2008

TORONTO - A Montreal penny-stock promoter has been charged in North Carolina with securities fraud for his alleged role in a $23.4-million US pump-and-dump scheme.

State authorities laid conspiracy and money laundering charges this week against Bryan Kos and American David Hagen after a grand jury returned a two-count indictment. None of the allegations has been proven.

The charges come just more than a year after the U.S. Securities and Exchange Commission imposed fines on the Montrealer and another American colleague, Donald Oehmke, of $650,000 and $1.5-million, respectively, for fraudulently selling shares in public companies. The SEC settlement did not carry an admission of wrongdoing.

****Oehmke is listed in the criminal charges as one of eight unindicted co-conspirators.

In a 29-page indictment, the U.S. attorney in Charlotte, N.C., alleges that Kos and Hagen—who was convicted in 1990 of mail and bankruptcy fraud as well as money laundering—earned $23.4 million by artificially creating demand for shares in virtually worthless companies between 2003 and 2006.

Those companies included BodyScan, Twister, Absolute Health, Concorde, BioHeal and GTX Global. Hagen was GTX’s chief executive, according to the indictment.

Both men and the alleged co-conspirators are alleged to have hidden their ownership in the companies through various offshore entities and marketed the shares via the Internet, unsolicited faxes, press releases and disclosure documents.

Those promotional materials contained “material factual misrepresentations and omissions,” including earnings projections that were known to be “unrealistic and unjustifiable,” statements about company operations that were “false,” and did not disclose that two of the co-conspirators have criminal records, the indictment says.

It blows my mind to see how long they take to press charges.

“The SEC settlement did not carry an admission of wrongdoing.”

The SEC is as guilty as anyone.

The SEC took the money that these criminals stole from investors to settle the charges.

The SEC got its cut like the Mafia, protection money called “fine.” According to the figures in this article they got about 10%.  I suspect some SEC officials got a few bucks on the side.  And the victims got nothing.

The NC AG should go after the officers in those entirely FAKE companies like Absolute Fitness and Twister Networks.

It’s been a long time since I looked at my research at Twister Networks and Absolute Fitness

It was pretty intense for a while, getting involved with all these crooks.

RESTITUTION for the defrauded investors is unlikely.

The SEC is happy it got paid off and I doubt that Oehmke et al were dumb enough to NOT hide the loot.  Thought I’d check the NC complaint to see whether they froze assets.

I couldn’t find a press release or the complaint at the NC AG’s site.

I couldn’t even find a way to search the site.  Here is another article.

Wednesday, February 13, 2008

America Asia Energy, Coattec Industries Inc., Detex Security Systems Inc. and Global Gaming Network

A reader submitted this post regarding my last posting at 8 indicted in ‘pump & dump’ securities fraud scheme—WHICH companies?, thank you!

Mother and son indicted for securities fraud

Posted Dec 7th 2007 4:51PM by Zac Bissonnette
Filed under: Law, Scandals

Thanks to Gary Weiss’ blog for bringing this one to my attention.

Beverlee Kamerling, 63, and her son, Nicholas Alexander, 22, have been indicted on 21 counts related to a large securities fraud scheme.

The pair, along with six others, allegedly took control of 6 companies (including America Asia Energy, Coattec Industries Inc., Detex Security Systems Inc. and Global Gaming Network Inc.), issued false and misleading press releases about the companies and engaged in fax blasts to promote the shares.

Of course, while all this happened they were also, allegedly, selling unregistered securities.

Real creative, mama and baby. That’s only been done about 11 million times.

I’ve always wondered why more women don’t seem to get involved in securities fraud—it’s possible that it’s just a reflection of the fact that Wall Street is still mainly male-dominated. Or perhaps, women are just more honest.

In any case, we can chalk this one up as a victory for equal opportunity securities fraud. And it is heartwarming to see mother and child bonding over the bilking of penny-stock players.

I might have some of those faxes.  Now the question is whether any funds will be recovered.

And here is the is the 12/5/07 US Attorney’s Office announcement.

Saturday, January 05, 2008

8 indicted in ‘pump & dump’ securities fraud scheme—WHICH companies?

It sure would be very helpful to know which companies they “secretly acquired.”

8 indicted in ‘pump & dump’ securities fraud scheme

Associated Press - December 5, 2007 9:35 PM ET

SEATTLE (AP) - A federal grand jury in Seattle has indicted eight people in Washington, Utah and Florida in a securities fraud scheme that allegedly brought in $1.2 million.

The indictment says the defendants sold stock in companies they had secretly acquired. They sent out press releases and “junk faxes” to pump up interest in the stock before they sold it. It’s called a “pump & dump” scheme.

1 of the defendants, 63-year-old Beverlee Kamerling, of Bellevue, has a history of stock fraud. In 1999, she was barred by a U.S. District Court judge from ever serving as an officer or director in a public company and she was ordered to pay back $1.5 million from another scheme. This time, Kamerling is accused of hiding her involvement by listing her mother, son and boyfriend as officers.

The indictment includes 21 counts, including mail fraud, international money laundering and obstruction of justice. Kamerling and her 22-year-old son, Nicholas Alexander, were arrested today.

A Bellevue lawyer who assisted them pleaded guilty in federal court last week.

The others charged are 32-year-old Joel Ramsden, of Delray Beach, Florida; 37-year-old John Johansen, of Plantation, Florida; 66-year-old John Worthen, of Salt Lake City; 65-year-old Donald Goldstein, of Highland Beach, Florida, and his son, 35-year-old Jamie Goldstein, of Boca Raton., Florida; and 36-year-old Seth Quinto, of Miami.

Securities fraud and mail fraud carry maximum penalties of up to 20 years in federal prison and fines of up to $250,000.

Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

If you have any info on the companies involved, please contact me.

Tuesday, August 14, 2007

Gulf Ethanol Corp.—GFET—association with uAuthorize (Uselton)

Gulf Ethanol buys land in China

Gulf Ethanol Corp. announced today that it purchased 25 acres of land near China, Texas to develop its production plant, company spokesman Dino Price said.

The company will use non-food based, cellulosic feed-stocks for the production of ethanol at its plants. It expects the plant to operate using a new hybrid sorghum developed specifically as an ethanol feed-stock by Texas A&M University.

A reader wrote that Dino Price is currently employed at uAuthorize Corporation in the position of President and Chief Technical Officer, uAuthorize Corporation is a subsidiary of Ablaze Technologies Inc.  and Dino is not employed by GFET, according to the latest financial records, they only have 3 employees.

Here’s my posting about Darrel Uselton and uAuthorize, see Darrel Uselton—UACP: Notice of publication and demand for $1,130 for SPAM

Of course he didn’t pay.

Tuesday, July 10, 2007

The Texas AG arrest video of penny stock pump and dumper Darrel Uselton

This is as cool as it gets!

Darrel Uselton’s 7/6/07 arrest video

Don’t I wish I saw more of those.

And here is the 7/9/07 TX AG press release:

Texas Attorney General, SEC File Market Manipulation and Stock Fraud Charges Against Two Texas Residents

Illegal “botnets” used to cheat investors out of more than $4.6 million

HOUSTON – Texas Attorney General Greg Abbott’s Special Investigations Unit charged two Texas residents with devising an illegal high-tech scheme to defraud investors out of more than $4.6 million. Both suspects, who were indicted July 3 by a Harris County grand jury, are the subjects of an ongoing investigation by several states and the Securities and Exchange Commission (SEC). In addition to the state’s charges, the suspects face securities fraud charges, which were filed today by the SEC.

Darrel Uselton, 40, of Katy, and his uncle, Jack Uselton, 69, of Houston, face organized criminal activity and money laundering charges. According to state and federal investigators, the Useltons reaped millions in illegal profits by promoting shares from at least 13 penny stock companies. The suspects then secretly sold those stocks into an artificially active market they created with manipulative trading schemes, spam e-mail campaigns, direct mailers, and Internet-based promotional activities.

The case is being prosecuted by the Texas Attorney General’s Office (OAG) and the Office of Harris County District Attorney Chuck Rosenthal with investigative assistance from the New York Attorney General’s Office. OAG investigators have seized more than $4.2 million from bank accounts associated with the defendants. Darrel Uselton was arrested by OAG investigators and is currently being held in Harris County Jail in lieu of $8 million bond. An arrest warrant has been issued for Jack Uselton.

“Investors will not tolerate scam artists who use the Internet to illegally manipulate stock prices,” Attorney General Abbott said. “Together with several states and the SEC, we have uncovered an elaborate scheme to defraud unwitting investors. The Office of the Attorney General will aggressively prosecute market manipulators, spammers and con artists whose illegal schemes defraud unsuspecting citizens.”

SEC Chairman Christopher Cox added: “This latest step in the Commission’s anti-spam initiative is intended to protect investors from fraud artists who would treat the investing public as their personal ATM machines. The use of bots to spread investment spam at exponentially higher rates is making this type of fraud an even more virulent threat to ordinary investors. Not only are victims getting hit with get-rich-quick spam, but by turning the victims’ computers into zombies, these fraudsters are sending out still more spam to others. Given estimates that up to one quarter of all personal computers connected to the Internet are part of a botnet, and the thriving market in selling lists of compromised computers to hackers and spammers, the SEC is taking this very seriously. We remain aggressively committed to tracking down anyone attempting to use bots to prey on investors with false or misleading spam about securities.”

The Commission’s complaint, which it filed with the U.S. District Court in Houston, charges the Useltons with orchestrating a series of spam e-mail campaigns. The scheme, which relied on an array of computer “botnets,” touted near-worthless penny stocks in millions of spam e-mails sent to potential investors. Those unsolicited electronic messages included baseless price projections and other unfounded claims. Each campaign, which featured a single company, lasted anywhere from several days to several weeks.

According to the SEC’s complaint, the Useltons earned more than $4.6 million from their fraudulent scheme between May 2005 and December 2006. The SEC’s complaint indicates the Useltons and companies they controlled received unrestricted penny stock shares despite little or no investment. Those shares were allegedly provided in return for their purported financing or promotional activities.

Darrel Uselton was disciplined by the National Association of Securities Dealers (NASD) in 2004 and 2005. In a 2002 action that has since settled, the SEC permanently enjoined Jack Uselton from violating anti-fraud regulations.

Darrel Uselton and Jack Uselton sued for organized crime - stock scams

A reader submitted a couple links about the Useltons, thank you!  Notably, I’m still waiting for Darrel Uselton to sue me.

July 10, 2007, 8:15AM
Katy man charged in alleged online stock scam

By STEVE McVICKER
Copyright 2007 Houston Chronicle

A Katy man faces organized crime charges in connection with an alleged scheme to sell worthless stocks over the Internet, according to the Texas Attorney General’s Office.

Investigators accuse Darrel Uselton, 40, of reaping “millions in illegal profits” by promoting shares in at least 13 worthless stock companies, then selling those stocks that had been artificially increased in value.

A statement from the attorney general’s office also accuses Uselton of orchestrating a series of spam e-mail campaigns to lure potential investors. The messages included “baseless price projections and other unfounded claims,” according to the statement.

Uselton is being held on $8 million bail at the Harris County Jail.

Uselton is also under investigation by the U.S. Securities and Exchange Commission and the Harris County District Attorney’s Office, according to the statement.

“This latest step in the Commission’s anti-spam initiative is intended to protect investors from fraud artists who would treat the investing public as their personal ATM machines,” SEC Chairman Christopher Cox said in the release.

Calls to Uselton’s home were not returned.

A second suspect is also being sought by authorities

The 12/29/06 Gulf Ethanol Corporation (Pink Sheets:GFET) press release announcing Uselton’s departure.

And here is the SEC complaint with the charges against JACK Uselton.  Stock fraud seems to be the family business:

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AHFI --
Absolute Health and Fitness
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Twister Networks, Inc.
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Recent Entries

Learned Jeremiah Hand and Wellstone Filter Sciences, Inc court order to remove all posts

The Art of Recom, MED, SGN, SGAL, Etc. Etc. Etc.

Jack and Darrell Uselton SEC settlement

Peter Leeds’ real name is Hornuck?

Updates and court docs on PrimeTV, Gatelinx, Gatelinx Global, GTX Global or GTXC VSTC.pk

Spammer Peter Leeds threatens with suit after refusal to accept his bribe

Peter Leeds desperately trying to get me to delete my FACTUAL post

Attorney Phillip W. Offill (Consolidated Sports Media Group) license suspension

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Links

"Analysis of stock fraud" -- Concorde America -- CNDD
The players: Tom Heysek, Jeremy Jaynes, Bryan Kos, Andrew M. Kline, Dan Hartal, Don Oehmke, Hartley Lord (CNDD), Jere Ross, Richard E. Rutkowski, Chad DeGroot, Tom Martin, Kevin Katz, Paul Spreadbury, Doug Paulson, Howell Woltz, Joehn R. Rooney, Javier A Cuadra

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"These people are absolute cannon fodder for this type of manipulation -- they think they are the fox, and others are the chicken," Edmunds said. "When you look at financial markets from a distance, there are many sheep and a few wolves.'"

2005 Junk Fax Suit

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