Penny Stock Fraud Info
The SEC only sues promoters Yafa and Pickens - the companies are not liable
The 7/19/05 Wall Street Journal article
Stock-Scam Case: a Pickens, a Fax, Bad Luck
The 7/18/05 SEC litigation release: SEC CHARGES STOCK PROMOTERS IN PHONY FAX SCAM
I’ve read through the SEC complaint and the companies who ORDERED the promotions walk away with their own profits—even though they received complaints about the spam and faxes.
So, what does this mean for investors?
1) They won’t get reimbursed for their losses as its unlikely that any attorney will sue since the promoters are expected to be broke.
2) You can expect lots more scams and illegal promotion.
Obviously, there will always be promoters and quite frankly, why shouldn’t I get into this very lucrative business once I left country?
I’ll hire some people in to set up accounts with the fax and spam broadcasters, the payments are wired from “dummy” accounts to be closed after the promotion and obviously NOT in my name. The shares I get as payment for the promotions go into dummy corporations, to be dissolved once I sold or maybe to sit there for the next scam.
I’m sure I’ll get a LOT of penny stock promotion business, especially once I can provide some charts to prove how effective my promotions are. I can buy 10 million fax numbers and many more e-mail addresses for just a few thousand.
Most important, the people HIRING me for the promotions have no liability whatsoever.
Of course I won’t be telling them how exactly I promote, I’ll mention web sites, Google ads, etc. If they have any concerns at all, I’ll just point at this SEC suit, showing that no matter what I’ll do, they have nothing to worry about.
THANK YOU, SEC!!!!
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c: e-mailed for comments to
“If there IS a reason for me and thousands of others not to engage in fraudulent promotions, please advise.”
Posted by Christine on 07/19 at 09:06 AM in
