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StockPromoters.com
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Welcome to Stock Promoters in the news. We search various news sources and bring you the stories here. Feel free to use the "Contact us" to send us additional stories any time.
April 4, 2008
Jury finds Broker Liable for Fraud
On April 3, the Commission obtained a jury verdict against stock promoter Cort L. Poyner of Pompano Beach, Fla., in a case entitled Securities and Exchange Commission v. The Children's Internet.
March 31, 2008
Internet investment scheme illustrates Growing Problem
Penny-stock fraud, schemes involving low-priced shares of small, obscure companies, is on the rise, the SEC says, and the regulator says the case of Beverage Creations should be a warning to everyday folks looking for the next best thing.
March 29, 2008
Man accused in Fraud finds money for Bond
Bedke said investigators continue to find more assets in overseas accounts. She said the case, previously thought to involve $70 million, is now up to $100 million, "and counting."
March 26, 2008
Slap Down "Free Market" Pirates
Its executives were notorious for testing the limits of the law by sheltering shady stock promoters and bucket-shop brokerages, and by swelling the assets ...
March 21, 2008
US Authorities say Stock Fraud cost overseas investors $50 Million
The scope of the scheme became known this week with the indictment of two Florida men on money laundering charges. They and 18 people in Brazil, including the suspected ringleader, had been arrested in February.
March 20, 2008
TV Producer Charged with Stock Fraud
Drew Levin, 54, the founder of Team Communications Group, Inc., was indicted by a federal grand jury on 13 counts, including conspiracy, falsifying his company's books and records, making false statements in annual and quarterly reports and lying to the company's auditors, the U.S. attorney's office said.
March 19, 2008
StockPromoter received 10 year Sentence For...
The Commission today announced that on March 14, Michael Saquella, a.k.a. Michael Paloma, was sentenced to serve ten years in federal prison consisting of 60 months for conspiracy to commit securities fraud and 60 months for conspiracy to commit electronic mail fraud.
Lawyer gets 7 years in NJ Stock Fraud Scam
A Denver lawyer is heading to federal prison for seven years after admitting his role in a large-scale penny stock fraud that cost investors more than $15 million and had some of its roots in New Jersey.
March 18, 2008
SEC Suit accuses firm of inflating Share Price
The civil lawsuit filed by the Securities and Exchange Commission against Saddle River resident Jack Belluscio Jr., Anscott Industries and the two promoters accuses them of scheming to improperly pump up the share price in 2003.
March 17, 2008
SEC Suspends Trading of 3 Companies on YouTube
The Securities and Exchange Commission today continued its highly successful pursuit against stock market e-mail spam by suspending trading in the securities of three companies...
SEC Lawsuit says pair used "Pump and Dump" Scheme
Want to make $5.5-million in just two months?...
Daughter Accused in Fraud Released
A federal judge agreed Monday to release on bond half of a father-daughter team charged with participating in a $70 million stock fraud scheme that may involve more than 1,000 investors overseas.
March 15, 2008
Texas Bar Suspends Dallas Lawyer over Role in Alleged Stock Scams
Dallas attorney Phillip W. Offill Jr. won't be able to practice law in Texas for three years after a disciplinary panel ruled that he violated professional standards in 2005.
March 14, 2008
SEC moves to Stumble House of Cards
A fledgling Mendota Heights company that promised to develop the next generation of sports drink is no more than a shell for a "pump and dump" stock scheme involving a small group of investors hoping to get rich quick, the Securities and Exchange Commission (SEC) alleges.
SEC Sues Penny Stock Traders, Alleging Manipulation
The Securities and Exchange Commission this week sued Jason Wynn, 25, and Ryan Reynolds, 36, alleging they illegally manipulated the stock price of a Minnesota-based company called Beverage Creations Inc. for their own profit.
Pair Allegedly rn $70m Stock Scam
MIAMI - A father-and-daughter team accused of duping 15,000 mainly elderly British investors out of $70 million was arrested in Florida yesterday, US officials said. Paul Robert Gunter, 58, of Odessa, and Zibiah Joy Gunter, 25, of Oldsmar, are suspected of hijacking the identities of dormant, publicly traded companies and selling fake stock in them to clients in Britain through high-pressure and misleading sales techniques.
Stock Fraud may bring Additional arrests
Federal authorities said they expect to make more arrests in the case of a $70 million international stock scam that already has a Tampa Bay area father and daughter behind bars.
March 13, 2008
Internet Law - Typical Structures of Internet Investment Frad
Numerous online forms of investment fraud mimic frauds previously committed over the phone or through direct mail. The Internet have provided new opportunities for defrauders including the ability to easily construct and develop online advertising, bulletin boards, online newsletters, e-mail, chat and Websites.
Raser Technologies: All Talk, No Profits
Despite another quarter of red ink, Martin Petersen, Chief Financial Officer of Raser Technologies, Inc (RZ), which is looking to develop geothermal assets as an alternative energy source, said the Company "made tremendous progress in achieving [our] goals during the year, setting the stage for a productive and exciting 2008."
March 11, 2008
Infomercial Stars Charged in Stock Fraud
Linda Woolf, 48, of Sandy, Utah, and David Gengler, 34, of Draper, Utah, passed themselves off as successful investors and persuaded consumers to pay anywhere from $3,000 to $40,000 to learn the "Teach Me to Trade" stock picking system, according to an indictment in U.S. District Court in Alexandria.
March 7, 2008
New York Prosecutors Charge former mortgage exec with $4 Billion...
The US Attorney for the Southern district of New York filed the charges against Mario S. Levis, who formally worked for the Puerto Rico-based Doral Financial Corp.
March 4, 2008
Ex-broker gets jail term in money-laundering plot
Rhett Howard Kirchhoff, 43, of Upper Township, Cape May County, must pay $11.6 million in restitution under a sentence imposed by U.S. District Judge Jerome Simandle.
Clearwater Woman Ran Stock Scam Police Say
Instead, Abreu took the $410,000 entrusted to her by Paul Jallo of Tarpon Springs and used the money for personal gain, Clearwater police said. March 2, 2008
ScamState: Pump and Dump Schemes
Pump and dump schemes revolve around stock in small companies, whose executives may be perpetrators or victims. A key point is the stock is "thinly traded" - with infrequent transactions and few buyers and sellers - which makes the price easier to manipulate...
February 28, 2008
4 Staten Islanders named in Mob Indictment
An alleged Rossville mobster collected money for his imprisoned father, a high-ranking Luchese crime family member, feds charged today in an indictment that named eight on racketeering and drug charges, including three Staten Islanders.
February 26, 2008
Energy Firm, CEO defrauded Investors
Federal securities regulators have accused a Casselberry businessman and his energy technology company of bilking investors and raising millions of dollars by spreading false information about the company's prospects, according to a lawsuit filed recently in Orlando federal court.
February 25, 2008
Jordan Belfort: Confessions of the Wolf of Wall Street
Fifty per cent of everything he earns is going to the investors he defrauded. In five years, he has paid back $14 million of the $110 million he owes....
February 22, 2008
SEC Nabs Penny Stock Pump-and-Dumpsters
The SEC has charged a Washington-based company, its CEO, and a stock promoter, with orchestrating a pump-and-dump scheme that defrauded investors of more than half a million dollars in just six months.
February 20, 2008
SEC Watching Lawyers More Closely
So far his year, the SEC has already brought seven cases against lawyers. Those cases largely involved pump-and-dump scams, said Joan McKown, chief counsel at the Division of Enforcement.
February 19, 2008
SEC Says Connect-A-Jet may have broken Securities Laws
The SEC sued Mr. Reynolds and other stock promoters Sept. 26, alleging violations of securities law involving a host of penny stock companies that allegedly were created with the help of Dallas attorney Phillip Offill. Mr. Offill has denied wrongdoing.
Trend Micro Sees Growth of Underground Cyber Crime Economy
This past year, the NUWAR (Storm) botnet expanded in scope when Trend Micro researchers found proof that the Storm botnet is renting its services to host fly-by-night online pharmacies, dabble in stock pump-and-dump scams, and even portions of its backend botnet infrastructure.
February 18, 2008
Last of $12 million "Pump and Dump" trio Sentenced
stock promoter Herbert Cannon, a convicted felon, Schweitzer and Steven Staltare, the manager of Global Financial Group in Fort Lauderdale were indicted in federal court in Manhattan for their involvement in a scheme to manipulate four small, publicly traded companies by bribing brokers at Global Financial Group, Inc.
Ohio Regulators ramp up inspection of Brokers
Mr. Nelson had fallen afoul of Ohio regulators, who, after years of neglect, last year were in the middle of a massive surge in reviewing brokers' records and flagged Mr. Nelson for an ugly stock scam in which he had unwittingly been a part in 1999 when he was breaking into the business.
February 15, 2008
Berkeley man faces criminal charges over Stock Fraud
A self-styled stockbroker, already under a court order to repay $5.7 million to aggrieved investors, now could face prison time.
February 11, 2008
Ralph Rogari and Mary Lee Secure Jury Award of $71 Million...
Attorneys Ralph Rogari and Mary Lee demonstrated to the seven person federal court jury that in early 2001, Erica Kim, Christopher Kim and Bora Lee conspired to acquire control of Optional Capital for use in a pump and dump stock fraud scheme.
February 10, 2008
Squeeze the truth our of Citrus Scam
A couple of thousand investors ended up getting burned and lost millions in a pump-and-dump stock scheme, only a few shipments of citrus ever made it to China...
February 8, 2008
Bellingham Penny-Stock firm acused of Pump, Dump Scam
The company's chief executive, Robert Pratt, of Lynden, racked up profits of more than $628,000 by selling shares at the height of the promotional effort, the suit says.
ENFORCEMENT PROCEEDINGS - SEC Alleges "Pump and Dump Market Manipulation By...
The complaint alleges that from February to August 2004, SMPP issued a series of materially false and misleading press releases...
February 7, 2008
SEC Thwarts Pump-And-Dump Spammer
The SEC today announced a settlement with a lawyer in California that they say helped against a multi-million dollar fraud...
SEC Charges California Attorney for role in Spam - Fueled Pump-and-Dump Schemes
The Securities and Exchange Commission today announced a settled enforcement action against attorney Kenneth M. Christison of Mill Valley, Calif., for facilitating a multi-million dollar fraud by issuing a series of bogus legal opinion letters used by fraudsters in spam-fueled pump-and-dump schemes.
February 1, 2008
South Korean Court Gives Lone Star Head 5 Years for Stock Fraud
The unexpected verdict against Paul Yoo related to Korea Exchange Bank's credit card unit, which Lone Star acquired shortly after the 2003 purchase of its parent at the behest of financial regulators. Lone Star and Korea Exchange Bank were also each fined W25 billion ($26.5 million)
January 30, 2008
Qtrax Free Music Launch Crashes - Stock Doubles
It‘s like opening the doors to your new Cheese Shop, without stocking any actual cheese. Qtrax spent over a million dollars on a gala launch party Sunday night at a music conference in Cannes. The subsidiary of Brilliant Technologies had arranged names like James Blunt, LL Cool J and Don Henley to trumpet the groundbreaking music file sharing service that promised users 25 million free songs.
Spammers dive into Google's Lucky dip
The IT security firm found that so-called search engine spam, which only came to light in the past few weeks, accounted for 17 per cent of all the spam the company saw in January.
January 29, 2008
Suspect in Bucks Fraud Arrested in Moscow
Mogilevich, described in some law-enforcement reports as a godfather of international organized crime, was charged with masterminding a multimillion-dollar stock-fraud scheme centered on YBM Magnex, a now-defunct company based in Newtown, Bucks County, in the late 1990s.
January 28, 2008
Montreal Businessman Andre Charbonneau gets seven years for Stock Fraud
Andre Charbonneau had been charged with 119 counts of defrauding 440 investors as he solicited funds for L'Alternative, a life insurance company he was starting.
January 24, 2008
SEC Settles Securities Fraud Charges against Aims
The Commission announced today that it has settled its enforcement action, which involves charges of a deliberate "pump and dump" scheme to defraud investors in the stock of Aimsi Technologies, against Defendants Aimsi Technologies, Inc. and Winfred Fields.
January 23, 2008
Former Monster CEO Admits Stock Fraud...
Today’s admission by former Monster chairman and CEO Andrew McKelvey that he participated in a stock backdating scheme that cost the company $340 million is only the first act curtain in a criminal investigation that appears likely to ensnare other executives from as far back as 1996.
January 22, 2008
Cancer Drug Securities Fraud Schemer Pleads Guilty
R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation, announced that on Friday, January 18, 2008, defendant Richard A. Anders pled guilty before U.S. District Court Judge Adalberto Jordan to one count of securities fraud in connection with a scheme that led to millions of dollars of losses for investors for a start-up company for a purported novel cancer treatment drug...
January 17, 2008
Swindled Investors could be Reimbursed
The U.S. Securities and Exchange Commission this week filed a plan to reimburse people bilked by former Springfield businessmen Wayne Gorsek and Lyndell Parks in a 1999 fraud case.
January 16, 2008
shareholder files Suit against CellCyte
The lawsuit seeks class-action status. The lead plaintiff is a San Diego-area stockholder who bought and sold several thousand CellCyte shares in the past three months, but attorney Steve Berman said the firm had been contacted by other investors as well.
Broker Fined, Suspended
The Investment Dealers Association of Canada issued the penalties this week against Chak (Jason) Ng, formerly of HSBC Securities, after a panel found he had not conducted proper checks of clients who participated in a "pump and dump" stock scheme at Markham-based Pender...
Why is SeekingAlpha giving Penny Stock Promoters a Soapbox?
That's why I was greatly disappointed to see that the site is providing a venue for Beacon Equity Research, a stock promoter that issues "analyst reports" in exchange for cash and/or stock from the company or third parties.
SEC Sues Russian Trader in Options Scam
Anatoly Russ, 25, used stolen user names and passwords for seven online brokerage accounts to place orders that offset his own trading in iShares Lehman Aggregate Bond Fund options, the Securities and Exchange Commission SEC said.
January 15, 2008
High Court Shields Bankers in Stock Fraud Cases
The case of Stoneridge Investment Partners vs. Scientific-Atlanta Inc. arose after Charter Communications, a St. Louis-based cable TV company, was sued for fraud after its stock price plummeted...
Northport Man Charged in Investment Scheme
Michael MacCaull, 36, was charged yesterday with bilking hundreds of customers out of more than $68 million by setting up a company, Razor FX, with offices in Great Neck and Saddle River, N.J., that purportedly could earn investors astronomical returns by trading in foreign currency.
January 13, 2008
Inside a Stock Fraud
The future didn't look bright for serial swindler and parolee Michael Lee Mitton when RCMP officers frisked him at Vancouver International Airport on a cloudy June day in 2004.
January 10, 2008
Let there be Light Crude: Zion's Holy Profits
Over the past 10 years, Ness has issued 180 million shares and collected almost $10 million from investors. ..
January 9, 2008
Novato Hi-Tech Firm Declares Bankruptcy
Officials blamed the declaration on a lawsuit filed by the SEC in U.S. District Court in San Francisco in December that accused former CEO Robert Olins of pocketing $2.6 million in a stock scam...
January 8, 2008
Commtouch Releases Year End email Threat Report
Throughout Q4 the so-called "Storm Worm" botnet was responsible for numerous outbreaks, including MP3 spam, in which an audio stock pump-and-dump message was distributed as an .mp3 email attachment.
How to Avoid the 10 Worst Internet Scams in 2008
Here is ScamBusters.org's top 10 predictions of scams you may confront in 2008 and what you can do to avoid them...
January 7, 2008
Ralsky Indictment Won't Reduce Spam
Many security experts say the overall impact to the amount of spam on the Web will likely be negligible...
Staten Island Man, Associates, Nabbed in Multi Million Dollar Stock Scam
A judge in Manhattan federal court recently imposed the civil sanctions against Vincent Danio, Richmond Global Ltd. and five other companies with variants of that business name, stemming from a multi million-dollar stock scam.
January 5, 2008
8 Indicted in "Pump-And-Dump" Securities Fraud Scheme
One 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.
January 3, 2008
Purported Spammer Accused of Stock Fraud
Alan Ralsky, 52, of suburban West Bloomfield Township, made about $3 million through the scheme in summer 2005 alone...
SEC Hits Brothers with Fraud Charges
The regulator filed fraud charges against Scott and Brian Lines in the United States District Court for the Southern District of New York. The Commission also named Lines Overseas Management (LOM), a Bermuda-based group of financial services companies that included several broker-dealers, in the charges as well.
Mich. Spammer, 10 others Indicted in Alleged Pump-And-Dump Scam
Michigan spam king Alan Ralsky , his son-in-law and nine others have been indicted in Detroit on charges of violating federal anti-spam laws, the U.S. Attorney’s Office announced.
January 2, 2008
Hamilton CEO Accused of $2.6 million in Stock Fraud
The SEC charges that from 2004 to 2006, Olins and the Argyle Capital Management Corporation, “a company of which Olins is the sole owner and director” forged auditor consents, engaged in illegal insider trading, and made unregistered sales of “hundreds of thousands” of shares.
Canadian Stock Promoter Alexander Barred Again
The British Columbia Securities Commission permanently barred James "Terry" Alexander from trading stock or being a company director for violating a 1999 order that had already prohibited him from that for 20 years.
January 1, 2008
BC Companies Accused of Inflating Stock Prices
LOM (Holdings) Ltd. and brothers Brian Lines and Scott Lines (who also operate as Lines Overseas Management) and two of their clients have been accused of making $6 million US in 2003 selling restricted shares in the two Vancouver companies - SHEP Technologies Inc. and Sedona Software Solutions Inc., both of which traded on the virtually unregulated over-the-counter bulletin board in the U.S.
December 31, 2007
PENNY STOCKS... Hearing-aid marketer sold short after merger with Dallas band firm.
Whether they knew it or not, through their merger with 226 Music Group, Hear At Last's executives appear to have hooked up with a network of penny stock promoters in Dallas, some of whom have been targeted by securities regulators.
December 28, 2007
Stockster Fraud Costs $1.8 Million
U.S. District Judge Otis Wright ordered Nicholas Czuczko to pay nearly $1.8 million, including a $100,000 civil penalty and "ill-gotten gains from his stock manipulation scheme" valued at $1.6 million.
Lake O Man ordered to pay $2M after Stock Scheme
The U.S. Securities and Exchange Commission, alerted to the scheme by an article published in The Oregonian in 2006, alleged that Nicholas Czuczko, formerly of Lake Oswego, used a Web site called The Stockster (www.thestockster.com) to promote thinly traded "penny stocks" in what's typically referred to as a pump-and-dump scheme...
December 26, 2007
Pump-and-Dump Scam Spam switches on Video
Pump-and-dump stock scammers have begun spiking their spam with high-quality video clips -- the latest move in a long-running scheme that in the past has relied on image files, PDF documents and even robotic audio to dupe consumers, a security company said today...
December 24, 2007
SEC Files Lawsuit against former SpatiaLight CEO
The litigation, filed in U.S. District Court in San Francisco, accuses former CEO Robert Olins of pocketing $2.6 million in a stock scam, selling stock based on inside information and lying to regulators about a company audit.
December 23, 2007
How the RCMP Botched a Sting
The affidavits became public as part of court proceedings involving an alleged stock fraud.
December 19, 2007
Hedge Fund Mobster Scammed $20M
A reputed mobster who scammed $20 million with a fake hedge fund has been sent to prison.
December 18, 2007
Staten Island man sentenced for role in Mob Stock Scam
John Baudanza, 37, of Rosebank was also ordered to pay $22,500 restitution for his part in a wide-ranging Colombo crime family racketeering conspiracy that manipulated stocks through extortion between 1994 and 2005.
December 15, 2007
Ohio fund Manager Sentenced to 13 Years in Prison over Stock Scam
David A. Dadante, 53, was sentenced to federal prison Friday by U.S. District Judge Kathleen O'Malley following a two-year investigation by the FBI and SEC after being found guilty on two counts of securities fraud in August.
December 14, 2007
SEC, FBI Busts 7 in Stock Kickback Sceme
The sting operation was set up in Florida. It sent word through the penny stock community that a hedge fund manager was willing to buy shares of stock for a 25% to 35% kickback fee.
Microcap Execs Pitch Big Investors on Small Stocks
The world of microcap investing has a reputation for attracting sketchy companies and stock promoters who purposely pump up share prices and then dump stocks once they've built enough hype.
December 13, 2007
Divergent Paths for two cited in Yellow School Case
Takesian, two of his family members, and five other people lost a federal civil suit that alleged they were swindled out of thousands of dollars in a questionable business deal with a Boston stock promoter, who had already been convicted of securities fraud.
December 12, 2007
Slipping into the Swamp of Moral Hazard
As a result of my values and life experiences, I chose conservative personal finances. Due to my preference for security and prudence, I forego the opportunity for larger gains and windfalls in exchange for the lower risk and security.
December 10, 2007
Closing Arguments in PurchaseProTrial: Prosecution began in 2002
A month later, in an official filing to the Securities and Exchange Commission, the revenue tally dropped even lower, to just $16 million. The stock price fell by more than 50 percent.
December 9, 2007
CellCyte Shares ride a Wave of Hype
A wave of glossy brochures and spam faxes, touting CellCyte with lofty claims, has helped propel the company's total market value to more than $440 million.
December 8, 2007
6 Arrested Over Plots to Pump Up Share Prices
What began with an undercover F.B.I. agent’s posing as a corrupt hedge fund manager led to the indictments of six people yesterday on charges of fraud in the shadowy world of penny stocks, federal prosecutors said.
December 7, 2007
InterFinancial Securities Fraud Case Dwaws a Guilty Plea
Gerald Kingston of Dallas has pleaded guilty in federal court to conspiracy to commit securities fraud in the manipulation of shares of Dallas-based InterFinancial Holdings Corp., a thinly traded penny stock.
The FBI as Hedge Fund Manager
Some stock promoters did, the government says. The FBI set up the phony hedge fund to make bad investments, and now the charges are being filed. Indictments are due later today, but the SEC has announced five civil cases.
December 6, 2007
Woman held in Alleged Fraud over Penny Stocks
A Bellevue stock promoter banned from the U.S. market eight years ago is among eight people arrested Wednesday on federal charges alleging they ran several "pump-and-dump" securities-fraud schemes.
Former Exec Convicted in Stock Fraud
The former vice president of human resources at Brocade Communications Systems Inc. was convicted Wednesday in the company's second criminal stock options backdating case to go to trial.
Park Capital Founders charged in Pump and Dump Scam
The three men operated a scheme to defraud customers between March 2002 and March 2003 involving the sale of penny stock in Orlando, Fla.-based Cordia Corp., said U.S. Attorney Benton Campbell in Brooklyn.
Penny Stock Promoters due ETrade for Racketeering
Sebastian River Holdings, a penny stock company, says it is suing E*Trade Financial Corporation (NASDAQ: ETFC) for "collusion amongst E-trade and its employees to unlawfully, manipulate the company's stock."
December 5, 2007
Eight Indicted in Securities-Fraud Scheme
A Seattle grand jury has indicted eight people in Washington, Florida and Utah after an investigation into an alleged "pump and dump" securities-fraud scheme that involved buying a public company, falsely inflating its worth and then dumping the stock through brokerages in the U.S and Canada, and the Turk and Caicos Islands.
December 4, 2007
Buffett to Testify in Stock Fraud Case
Federal prosecutors intend to call billionaire investor Warren Buffett to testify against five former senior insurance executives charged with helping the American International Group to manipulate its financial statements through $500 million in phony transactions, according to court documents.
Novori, Gullin, Paper, Trustcash Holdings named in Stock Promoters
The spam touting Novori said that a company named either Strategic Capital or Green Strategic Capital had been hired by an unspecified third party consultant to receive $115,000 for publication and circulation of the report.
December 3, 2007
HR Chief Goes on Trial in Brocade Backdating Case
The criminal fraud trial of Stephanie Jensen, the former head of HR at Brocade Communications, got under way last week in San Francisco. Jensen’s attorneys tried to make the case a battle over which department—HR or finance—is to blame for an allegedly illegal compensation and accounting scheme.
Upstart Storm Swiftly gained Web Strength
Large botnets can be used to launch massive scams, including e-mail pump-and-dump schemes, in which criminals purchase cheap stocks, trick others into buying to briefly drive up the price, and then unload them at a profit.
December 2, 2007
It's not a time for the Faint Hearted
The warning was drafted in the 1990s. It was aimed at the “pump and dump” firms that specialised in churning out penny shares with big spreads between the buying and selling prices, and used high-pressure sales teams to flog them to an unsuspecting public.
Why White-Collar Crime Team Fizzled
The sting included Jack Purdy, a Canadian stock promoter who was charged, but later acquitted of money laundering.
November 30, 2007
Prosecutors: Identity Theft hid Stock Fraud
A federal grand jury indicted Eric Richfield Majors, 37, of South Africa and Joshua Neale Wolcott, 34, of Denver. Majors was CEO and Wolcott CFO of Maximum Dynamics, a now-defunct Colorado Springs company. November 28, 2007
Seeing through False Identities, SEC Charges 2 with Fraud
The SEC has filed charges against Maximum Dynamics, Inc. CEO Eric R. Majors of South Africa and CFO Joshua N. Wolcott of Denver, Colorado, for their roles in a fraudulent scheme to offer and sell 8 million shares of company stock.
"Strongest Lawyer" Wilts in Stock Market Fiasco
For years, Furusho has worked closely with notorious B.C. stock promoter Beverlee Kamerling, a.k.a. the Queen of Outrage.
November 28, 2007
Scam 101: Don't get Burned
We put our trust and our financial lives in their hands, but how can we be sure that our financial advisers are reputable?
Live and Die in Micro Cap Time
Forbes.com recently called up Chace to find out which companies he's buying right now, how he avoids the pump-and-dump schemes that riddle the micro-cap universe, and how he applies the lessons he learned in the Peace Corps to managing money.
November 26, 2007
After Warm-Ups, Regulators get Serious about Compliance
In October, the Securities and Exchange Commission brought its first case for not following its 2003 investment adviser compliance rule, against Consulting Services Group LLC of Memphis, Tenn. The firm's founding partner, Joe Meals, was barred permanently from serving as a compliance officer of a securities firm...
Former Brocade HR Exec Goes on Trial
Federal prosecutors say Jensen told Brocade staff how to back-date stock options and then took steps to cover her trail, instructing employees not to talk about the action.
November 24, 2007
What Would you Sacrifice for Mind-Blowing Returns?
While the AMEX sees TAP as a "farm system for micro-cap stocks," I see a haven for penny stocks and pump-and-dump schemes. And the AMEX doesn't necessarily disagree.
November 21, 2007
Federal Judge Cites Crime-Fraud Exception in Ordering Attorney's Testimony
A group of investors filed suit in 2005 against Hauppauge, N.Y.-based Defense Technology Systems Inc., as well as several company officers and other individuals, charging that the company's stock was used in a "pump and dump" scheme.
State Wins Stock Fraud Case
The state has won a $19 million settlement in a fraud case against a communications company.
November 20, 2007
Universal Express: The Goofy lil' Stock Promotion that gets more Outrageous each Month
Universal Express certainly wasn't the biggest promotional pump and dump of all time, but it's definitely one of the most brazen. Much of former CEO Richard Altomare's looting of shareholders through the sale of unregistered securities took place after the SEC had told him to stop and ordered him to resign as CEO.
November 16, 2007
Former Islander with Alleged Mob Ties gets 10 Years for Stock Scam
A one-time Richmond Valley resident was sentenced earlier today in Brooklyn federal court to 10 years behind bars and fined $100,000 for his role in a mob-controlled stock scam that allegedly raked in more than $20 million.
November 15, 2007
CEO and Three Others Indicted for Manipulation of Smart Online Stock
MICHAEL J. GARCIA, the United States Attorney for the Southern District of New York, announced today that DENNIS MICHAEL NOURI, the former Chief Executive Officer and President of Smart Online, REZA ERIC NOURI -- a former Smart Online employee and brother of the CEO -- and stock brokers RUBEN SERRANO and ALAIN LUSTIG were indicted today..
November 14, 2007
Judge Drops Bribery Charges Against Camera Company
Blodgett assumed the role of CEO less than one year ago after then CEO Mark A. King, stepped down in a stock fraud scandal, admitting that he and the company's number two official at the time "violated the company's code of ethics for senior financial officers."
Fraud and Scam Attacks increased 18% in October
Bowers said other things that were notable include the debut of MP3 spam. He said that MP3 joins a long line of pump and dump stock spam that included image spam.
November 13, 2007
Forget Iraq. Private Security Contractors Loose in Washington
Mr. Mogilevich is accused in a 45-count racketeering and money-laundering indictment in Philadelphia of masterminding an elaborate stock fraud using a web of shell companies in Europe.
November 11, 2007
Looser CEO's Raking it In
Who knows what the class-action suits against Merrill and Citi for stock fraud will cost? Merrill's stock has deflated from almost $100 per share to $60. Citi's stock is down from $55 per share to $36.
November 10, 2007
Tough Guy with Charm, Often Living on the Edge
He would continue to call Mr. Ray his best friend until Mr. Ray was indicted in March 2000 for a minor role in the mobster’s stock fraud scheme.
November 9, 2007
Kim Kyung-Joon to Arive on Nov. 17
A Korean-American businessman, a former business associate of South Korea's leading opposition presidential candidate, will arrive in Seoul next week in the custody of prosecutors.
The Woman between the Snake and the Dinosaur
The front runner, Lee Myung Bak, who had over 50% support in opinion polls until recently, had his lawyers try to trip up the extradition of his former business partner, Chris Kim, who allegedly had run to the US with $49 million of stolen money from stock fraud.
November 8, 2007
$4-million Securities Case
Two men involved in a Red Deer stock scam have been permanently banned from trading.
November 7, 2007
Street Pariah
His card-table patience and strategic sense have guided the firm through previous imbroglios, such as its 1999 federal fine for providing back-office services for penny-stock scam house A.R. Baron.
November 6, 2007
Accused Thief Seeks Creditor Protection
A former government employee charged with defrauding the RCMP's stock-fraud section of thousands of dollars is so badly in debt that she recently went to court to seek protection from her creditors.
November 5, 2007
Hosting Firm claims to beat MP3 Spam
A web hosting firm claims to have developed spam filtering technology that can weed out MP3 attachments.
Last Call: Herbalife Shares Drop
The report alleged that Herbalife's distributors are attempting to recruit Chinese sellers to increase sales in the country. The report was released by the Fraud Discovery Institute, which Barry Minkow founded after serving eight years in prison for stock fraud.
November 1, 2007
VOIP is the nest target for Spammers
Henning Schulzrinne, co-author of the session initiation protocol (SIP) that is used by all the major VoIP services except Skype, believes the attack (which left unsolicited marketing messages on multiple phone extensions at Columbia University) might have been targeted at him, but could also have been a result of the institution not having a stringent firewall policy in place.
October 26, 2007
Play & Pump / Cheap Seats / Eye am a Camera...
E-mails are sent with an attached MP3 file purporting to be a song by such artists such as Elvis Presley, Fergie and Carrie Underwood. Users may click on the MP3 file expecting to hear these artists' files; however, it contains a voice -- randomly altered in an attempt to avoid detection by anti-spam filters -- encouraging people to buy shares in specific Canadian companies.
Fired Smart Online Employee Sues Company
The suit, filed in Orange County Superior Court, claims that Durham-based Smart Online fired Nouri not because he did anything wrong personally but because he is the brother of Michael Nouri and Eric Nouri, two former employees who have been charged with securities fraud.
October 25, 2007
WellCare shares plunge on Fed Raid
Shares of health care provider WellCare Health Plans Inc. plummeted Thursday, a day after questions about a federal investigation of the company led to a rapid sell-off.
West Vancouver Stock Promoter Arrested in Italy
Italian police have arrested West Vancouver stock promoter Robert Papalia in Milan and charged him with associating with Mafia figures.
Securities Lawyer Accused of Fraud is Forced to Resign
Martin E. Weisberg, a corporate lawyers accused of participating in a $55 million stock fraud scheme, resigned from Baker & Mckenzie on Thursday after the firm asked him to.
October 24, 2007
Raids Capture Alleged Mob Kingpins
Arrested in Milan yesterday A long-time resident of Vancouver, the 62-year-old stock promoter has frequently run afoul of police and government regulators over the past three decades...
Pump-and-Dump Spammers Proliferating, Agency Warns
A U.S. securities regulator has warned investors to be wary of scams touting huge potential profits from energy-related stocks, when the only people likely to make money are those running the schemes.
October 23, 2007
XDSL CEO Settles SEC Charges: Should they look at XDSL?
So the fact that MPhase Technologies (OTC BB: XDSL) CEO Ronald Durando just settled charges with the SEC related to an alleged pump and dump scheme involving shares of a company called PacketPort might raise some questions for investors.
Indicted Partner in Stock Fraud Scheme was Aquitted in 1991 Texas
The Baker & McKenzie partner indicted Friday on stock fraud charges in the Eastern District of New York was previously tried and acquitted on similar charges in a 1991 case brought by federal prosecutors in Texas.
FINRA Identifies Energy Stocks as Latest "Pump and Dump" Scheme
The Financial Industry Regulatory Authority (FINRA) issued an Investor Alert today warning investors to be wary of energy-related stock "pump-and-dump" scams that entice investors to purchase stocks that promise exponential price growth.
October 22, 2007
SUNY Alum Funds new "Trading Room"
The panel's majority found that Pasternak's response to numerous red flags in the stock fraud was "woefully inadequate," according to a news release.
Is Carmen Electra selling herself to Shady Penny Stock Promoters?
I don't know the extent of Ms. Electra's involvement with these companies/stock promotions. But the fact is she has gotten herself involved with some pretty shady characters, and it's something her handlers may want to keep an eye on: Associating with the targets of SEC investigations can be a career-killer.
Baker & McKenzie Partner Charged with Stock Fraud
The pair allegedly evaded the restrictions on the shares by short-selling the companies' stock, using the discounted shares to cover their positions. Prosecutors charge they also paid Weisberg and executives of the two companies millions of dollars in kickbacks.
October 19, 2007
Garden State Business Briefs
Two Nutley men and a Springfield attorney accused by securities regulators of participating in a "pump and dump" stock fraud have agreed to settle a civil lawsuit, the Securities and Exchange Commission said yesterday.
October 18, 2007
Fox in for fun not Investment Advise
Even a double-barrelled blast of Maria Bartiromo and Jim Cramer, the manic stock promoter, on Fox's rival CNBC could not match this cocktail.
MP3 Spam being Deployed for Pump and Dump Hype Stock Scam
The latest spam is a 30-second MP3 file recorded at low bit-rate featuring a synthetic, heavily-distorted female voice promoting a particular stock. The distortion lets the attachment thwart signature-based anti-spam technology.
Enforcement Proceedings - In the matter of PacketPort.com, Inc...
On October 18, the Commission instituted settled cease-and-desist proceedings against issuer PacketPort.com, Inc. and six individuals and companies for violations of the registration and other provisions of the Securities Act of 1933
October 16, 2007
Deer Park man arrested for Stock Fraud
In September of 2007, he was approved for options trading and deposited a check for $95,000 in the account to cover his trading activity.
CA $6M Stock Fraud Sentence
United States Attorney Karen P. Hewitt announced that Vencent A. Donlan was sentenced today in federal court in San Diego by United States District Court Judge John A. Houston to serve 46 months in prison, following Donlan’s guilty pleas to federal fraud and tax charges.
October 13, 2007
Queen of Outrage Banned from Albert's Market
Everywhere Beverlee Kamerling has gone, she has left a vapour trail of outrage. The aging seductress has conned hundreds of people into investing in her rotten stock deals, and she has talked plenty of brokers, accountants and lawyers into assisting her.
October 11. 2007
Fraud Cases of Businessman, Ex-Judge Linked
Sam Currin laundered about $1.4 million through some of the same shell companies in the Bahamas that David Hagen is accused of using, court records show.
October 10, 2006
Screen Payoff for Fraudster
The Queens-born schemer just published "The Wolf of Wall Street," which has been optioned by Martin Scorsese. Belfort, who'll be played by Leonardo DiCaprio, will serve as consultant. And he's already pounding out a sequel.
A Wolf in Thief's Clothing
But it’s hard to tell whether Wolf is an apology or a frenzied recounting of fast-living days where money was limitless and Belfort carelessly indulged his tastes for toys, hookers, Quaaludes and cocaine. When a man admits to racking up a $700,000 hotel bill, it's always going to seem more like enduring hubris than regret.
Stock-Scam Crackdown: Too little, Too late?
So far, the SEC has suspended 42 companies under its anti-spam initiative. In its latest penny-stock regulatory action, the SEC on October 4 suspended the stocks of Alliance Transcription Services, Prime Petroleum Group and T.W. Christian.
Justices Skeptical of Suit by Investors
The justices heard arguments in a closely watched case involving Charter Communications Inc. that asks who can be sued for a stock fraud - just the company that perpetrated the fraud or all those who participated in its fraudulent scheme?
Junior Johnson on Trial again for dot.com fraud
A one-time dot-com billionaire and former University of Cincinnati basketball star not only cheated investors at his now-defunct software firm, he also tried to defraud a federal court at his trial last year by pushing his lawyer to introduce phony e-mails as evidence, prosecutors said Tuesday.
Octobder 6, 2007
In the matter of Certain companies Quoted on the Pink Sheets... Order of Suspension of Trading
The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the companies listed above.
October 5, 2007
SEC says Crackdown on Stock-Touting Spam pays Dividents
"Operation Spamalot," as it was called, marked a more aggressive government effort to tackle spam e-mails touting a company's stock by falsely claiming a major new oil discovery or a new drug breakthrough.
Dad Accused of Clocking Son's Football Coach
Romano's family has close ties to New York organized crime. His brother, Salvatore (The Pizza Guy) Romano, was nabbed by the feds in a $20 million stock fraud scheme in 2004, and set to turn state's witness against Gambino family boss John (Junior) Gotti last year.
Gatelinx Owner Nabbed in New York
The affidavit accuses Hagen of using erroneous Web sites purporting to give tips to drive up the stock price of his Southern Pines-based business GTX Global, formerly known as Gatelinx Corp, so that he could sell his stock.
October 4, 2007
Book Review: Jordan Belfort's The Wolf of Wall Street
Jordan Belfort was the king of pump-and-dumps during the 1990's, presiding over Stratton Oakmont, a real life version of Boiler Room's J.T. Marlin. He was earning millions of dollars each month, doing enormous quantities of cocaine and a drug called Quaaludes, and sleeping with dozens of prostitutes, in spite of his marriage to a beautiful and wonderful lady he calls the Duchess of Bay Ridge...
SEC Crackdown on Stock Spam Grows
The Securities and Exchange Commission expanded a seven-month crackdown Thursday on the use of "spam" e-mails to inflate stock prices, halting trading in shares of three additional companies.
October 1, 2007
Man gets Prison for Internet Stock Fraud
Faisal Zafar, the president of Secure-Minds, a computer repair company, was convicted of making $870,000 in what prosecutors believed was the first known extensive use of Internet bulletin boards in a pump-and-dump fraud.
Corporate Chairman / CEO Sentenced to 240 Months in Prison for Stock Scheme That Swindled over $15 Million from Investors
The major shareholder who also served as Chairman and CEO of TeleServices Internet Group, Inc., was sentenced to 240 months in federal prison today for operating an intricate stock fraud and money laundering scheme that cost public investors more than $15 million in losses, U.S. Attorney Christopher J. Christie announced...
September 30, 2007
Don't Beleive STock Tips you get Online, Via Fax
It's called pump and dump, and it's probably as old as the stock market. The concept is simple. The bad guy buys a stock that is going nowhere. He then spreads a hot tip that the company has struck oil, or landed some big new contract and the stock is about to go through the roof...
September 26, 2007
The See-Through Stock Scam
The problem, federal regulators say, is that Keeney was advising Frederick's board on May 17, 2006, when directors formally moved to pursue the merger. And starting the next month, Keeney directly participated in the merger talks and served as an intermediary between the two boards, the S.E.C. said.
SEC Announces New Initiative To Warn Investors About Questionable Securities Solicitations - Commission Seeking Public Comment On Web-Based Program Aimed At Unregistered Soliciting Entities
Through its "Public Alert: Unregistered Soliciting Entities" (PAUSE) program, the Commission will publish on its Web site certain factual information about unregistered soliciting entities that have been the subject of complaints forwarded by investors and others around the globe, including foreign securities regulators.
Smart Online Reaches Settlement with SEC
The Durham software company will not pay any monetary penalty in the settlement, it said.
September 25, 2007
Business Man gets 20 Years for Fraud
After a four-week trial in the spring, Robert P. Gordon, 57, of St. Petersburg, Fla., was convicted by a jury of defrauding public investors of more than $15 million.
September 24, 2007
Understanding Pink Sheets
Pinks sheets when it comes to stock markets refers to the color of the paper that quotes were made on in the past. The pink sheets as we know it today - is an electronic quotation system for over the counter securities.
September 23, 2007
A Cleanup man in Brennan Aftermath
Last October, the Securities and Exchange Commission mailed checks worth $28.6 million to nearly 54,000 Brennan investors. About 11,700 of those checks worth $4.5 million were never cashed.
September 21, 2007
Party's over for Hedge King
"I would like to thank the thousands of inept corporate management teams, shady brokers, boiler rooms, stock promoters, market manipulators . . . for your endless scheming and undying greed without which my fortune would never have been possible."
September 20, 2007
For Repeat Fraudsters, Crime DOES Pay
This time, he wound up working an alleged scheme to pump and dump the price of micro-cap shares, making a $2.15 million profit, according to the SEC.
September 18, 2008
SEC Cuts Off Telecom Stock Fraud
The SEC has halted an unregistered securities scam that it claims bilked investors across the country out of $1.13 million.
September 17, 2007
SEC Charges Two in $3M Scam
Kaplan and Paloma also faced criminal charges for their part in the pump-and-dump scheme. The U.S. Department of Justice announced that Paloma plead guilty to one count of conspiracy to commit securities fraud and one count of electronic mail fraud in an Alexandria, Va. federal court.
September 16, 2007
The Greedy Bunch
20 Years after the release of Wall Street "Greed is Good" Still rings true...
The New Arms Race
Criminal spammers have unleashed an aggressive assault on e-mail inboxes around the world -- part of an increased campaign expected to cost the global economy $100 billion in 2007.
September 15, 2007
TD Ameritrade Client Data Stolen in Computer Breach
Stock promoters may use the stolen e-mail to pump up share prices so they can sell their holdings at a profit, Paller said.
September 14, 2007
Fugitive Wanted in Inland Investment Scam Arrested
Richard M. Harkless, the former head of Riverside-based MX Factors LLC, was arrested in connection with an investment network that took in $58.5 million from more than 500 people. Investors are still owed more than $39 million from the scam, according to officials...
Pump-and-Dump Stock Spammers Face up to Ten Years in Jail
All four men have pleaded guilty to counts of fraud and are facing between 5-10 years in prison when sentenced later this year. Saquella and Kaplan have also admitted multiple Securities and Exchange Commission (SEC) violations. Three other defendants, Steven P. Luscko, Gregory A. Neu, and Brian G. Brunette, have already been sentenced to between 1-5 years in prison..
TD Ameritrade's 6 Million customers hit with Security Breach
The discovery was made a couple of weeks ago, when the online broker learned that investment-related spam had infiltrated the brokers' system. The malicious code allowed a hacker to access some of the information stored in the database.
September 12, 2007
Smart Online Chief, brokers accused of Stock Fraud
Dennis Michael Nouri, the CEO, and his brother, Smart Online employee Reeza Eric Nouri, are accused of bribing brokers for several months in 2005 to sell the company's stock to their customers so the share price would rise, the U.S. Attorney's Office in Manhattan said...
September 11, 2007
MX Factors Former Head Charged with running a Ponzi Scheme
Federal authorities arrested Richard M. Harkless, former head of MX Factors LLC, and charged him with operating a Ponzi scheme that bilked investors out of more than $39 million.
Mark Armand Rousso's Friends
I followed it up with several blog posts with more information on history of its founder, Mr. Rousso, a long -time stock promoter who plead guilty to stock...
Beware of the Penny Stock Hype
Traditional penny stock campaigns follow a simple formula. Promoters and insiders use these advertising campaigns to increase the price of stock they own, then often sell shares at pumped-up prices...
September 10, 2007
Fallen "Master of the Universe" writes his own Tale of Wall Street Depravity
Jordan Belfort, boiler room kingpin, felon and author, cackled with glee. "There is the scene of the crime," he said, pointing out a car window at the off-ramp leading to the Bronx...
September 6, 2007
Penny-Stock Promoters Plead Guilty
Two Arizona-based stock promoters pleaded guilty to securities fraud charges and agreed to be barred from penny-stock deals under a related settlement of a civil lawsuit under a settlement announced Thursday by the Securities and Exchange Commission.
SEC Charges Software Firm with Stock Scam
FacePrint Global Solutions and its CEO Pierre Cote, sold millions of shares of stock to the public through nominee accounts, without registering the shares with the Commission. According to the complaint, Cote then funneled the proceeds of the sales back to FacePrint, a struggling start-up company purportedly in the business of developing facial recognition software for use in fighting crime and terrorism.
SEC and US Attorney charge Repeat Stock Promoter and Penny Stock Trader with Illegal IPOs and Pump-and-Dump Manipulation Schemes
The Securities and Exchange Commission today announced a settled civil action against two Arizona-based scammers alleging their participation in an elaborate market manipulation scheme that involved unlawfully taking public seven microcap companies, inflating their share prices, and dumping millions of shares into the public market.
Department of Justice Reports four Defandants Plead Guilty on Securities Fraud-Related Charges - Pump-and-Dump Scheme
Four defendants have pleaded guilty to defrauding investors of over $20 million in stock manipulation schemes involving 15 different publicly traded companies, Assistant Attorney General Alice S. Fisher of the Criminal Division and U.S. Attorney Chuck Rosenberg for the Eastern District of Virginia announced
September 5, 2007
Judge Orders Receiver for Universal Express
New York Federal Court Judge Gerard Lynch ordered a receiver to take over Boca Raton-based Universal Express which would end Richard Altomare's tenure as chairman and chief executive officer.
Breathless Pitches for Penny Stocks now in Newspapers
The promotion of penny stocks, for years a staple of Internet spam and “boiler rooms” running illegal pump-and-dump schemes, has recently burst forth in splashy full-page ads in major daily newspapers.
August 31, 2007
Penny Ante Hustler turns to Gold Stock
In addition to stock fraud, he became an expert in GST fraud. Federal Crown prosecutors alleged that from 1995 to 2001, he submitted claims for GST refunds ...
August 30, 2007
Fresno Anti-Terrorism Software firm with Illegal Stock Scheme
FacePrint Global Solutions Inc. (OTC: FPRN), a Fresno-based start-up company attempting to develop facial recognition software for use in crime and terrorism prevention, and its CEO, Pierre Cote, have been charged by the Securities and Exchange Commission with supposedly conducting an illicit stock-selling scheme that raised nearly $1.5 million.
Singing Scammer to Audition at Hearing
Salvatore Romano, a convicted scammer who fleeced more than $20 million from investors in "pump and dump" stock schemes, will take the stand against wiseguy John "Johnny G" Gammarano, a longtime foe of the Junior Don as well as his late father, the erstwhile Dapper Don, John Gotti Sr.
August 29, 2007
Stock Scam worth $6.7 Million
A former Goldman Sachs analyst pleaded guilty yesterday to a wide-ranging insider trading operation that relied in part on illegal stock tips from a grand juror and leaked copies of a market-moving magazine to make millions of dollars.
Reputed Mobsters to face the music in Stock Scam
Two Staten Island men, who, federal prosecutors say, headed a wide-ranging Colombo crime family racketeering conspiracy that manipulated stocks at more than a dozen brokerage firms through extortion are about to pay the piper -- to the tune of up to 20 years in prison and restitution of $1 million.
Wave of Text Message Spam Hits area cell Users
"It was a stock offering of some kind or some kind of stock sale," he said. "I was just appalled. It was the first time I'd ever gotten anything like that."
August 27, 2007
Stratton Oakmont's Legacy of Fraud
Founded in 1989 in a car dealership in Queens, Stratton quickly moved to an office building on Marcus Avenue in Lake Success. Riding a wave of investor enthusiasm for small stocks during the great bull market of the last decade, Jordan Belfort and his partner Daniel Porush, who also later went to jail, amassed large fortunes by perfecting the art of the "pump and dump" scheme...
New Book by LI's "Wolf of Wall Street" ex-con
Belfort, who in the late 1990s pedaled nearly worthless stocks to thousands of unsuspecting investors at Stratton Oakmont, a now-defunct brokerage in Lake Success, has sold a 500-page book that he calls a "satirical reconstruction" of his career to a unit of publisher Random House Inc.
August 26, 2007
Dark Days in Bamfield
CLOSED Dust gathers at the Bamfield Inn, one of a number of properties around Bamfield owned by former Vancouver stock promoter Jack Purdy.
Police Use Soaps to fight Scams
Britain's top soap operas are being persuaded to join the battle against 'boiler room' investment scams.
August 25, 2007
A National Regulator is needed to tame our Wild West Markets
Felderhof's acquittal on charges of insider trading means that not one executive from Bre-X will be punished for one of the greatest securities frauds in Canadian history.
August 23, 2007
Court Closes SEC's $5M Fraud Case
A federal court in Southern California has entered final judgments against two San Diego men that the SEC originally charged with securities fraud. The two men, Todd DiRoberto and Brian Lee, allegedly raised more than $5 million from an illegal private placement offering in two internet companies—Zandria Entertainment Networks and LevelRed Investments both internet companies.
FTC, Whole Foods CEO Both Wrong
He resorted to the tactics favored by penny-stock promoters and small-time Internet scammers, and he now finds himself under scrutiny from the SEC. ...
August 22, 2007
Misgivings Spoil Plans of Start-Up
On Monday, Maxim Group, the underwriter, pulled out of the offering, though it did not cite any specific reason for its change of heart...
Misgivings Spoil Plans of Start-Up
The event in Manhattan was meant to build interest in the company, founded by Marc Armand Rousso, who had promoted penny stocks...
August 21, 2007
Stock Scam highlights Growing Spam Threat
A company in Florida that operates convenience stores and wireless technology retail outlets was hit this month by a massive "pump-and-dump" scam, in which fraudsters used spam e-mail messages to drive up its stock price so they could then sell shares at a profit.
August 18, 2007
Boyle Falls in latest bie for Release
Boyle, 41, has been in custody since May 2004 for his role in masterminding a multimillion-dollar stock scam that bilked more than 100 Alberta and B.C. investors out of their money, some of whom lost life savings.
August 17, 2007
Dadante Admits Stock Fraud
An Ohio investment manager who used brokerage accounts at Baltimore's Ferris Baker Watts to carry out a stock manipulation scheme pleaded guilty yesterday to two counts of securities fraud and agreed to cooperate in a continuing federal probe...
August 15, 2007
Behind Bars, Brennan Still owes Investors
Fallen penny stock promoter Robert Brennan may still be in prison, but state officials want to release some of his cash.
August 10, 2007
Stopping Spammers at The Point of Sale
The researchers developed a techynique called "SpamScatter," which analyzes spam mail and follows the links to their destination server, including any redirection mechanisms put in place.
5 More Stocks under Attack
Most of the names here are familiar to us from the last time we looked at the list, meaning that short-sellers continue to dislike the prospects for these companies.
My Smartest investment
Penny stocks taught me to take my time and read as thoroughly as possible about a company before investing.
A Netroots Founder Amid a Stock Scandal
Jerome Armstrong, founder of such popular lib-blogs as MyDD and the coauthor of “Crashing the Gate,” with Markos Moulitsas Zuniga, a.k.a. DailyKos, settled a longstanding case with the Securities and Exchange Commission.
Police Believe Couple Missing since 1994 were Murdered
The couple's Aug. 10, 1994, disappearance sparked rumours of biker gangs, money laundering and retaliation over stock deals gone sour.
August 9, 2007
Giant 'Pump and Dump' Spam Scam hits Computers
Spammers have unleashed one of the biggest online stock manipulation campaigns in history in the last 24 hours, increasing global spam levels by 30 percent, a leading IT security company claimed Wednesday...
Inbox Hell: Half a Billion Stock Spam e-mails
And the campaign seems to have had the desired effect. Prime Time's stock, which trades on the penny-stock Nasdaq Pink Sheets under the symbol PRTH, was at 9 cents (U.S.) yesterday, almost double its level of a week ago. Trading volume this week has been roughly double the stock's 12-month average.
August 8, 2007
Sophos smells Super-Sized Spam Stock Scam
"On Tuesday, August 7, we saw a spike in the amount of spam being captured in our filters," Ron O'Brian, a Sophos security analyst, told TechNewsWorld. "The spike of about 30 percent was directly attributed to a campaign that targeted a company called 'Prime Time Group."
West Linn Man Pleads Guilty in Stock Scam
In a U.S. District courtroom in Portland packed with so many angry investors that many stood in the back, Charles Wesley Rhodes Jr., 56, pleaded guilty to one count of mail fraud and one count of money laundering.
"Pump and Dump" Stock Practice... A Dangerous Business
Regulatory bodies have actually come up with some pretty inventive ways to further combat this issue - for example, the subject company of an e-mail spam may face a cease-trade order from the stock exchange for five days...
CEO Convicted in Brocade Stock Fraud
The guilty verdict on all counts is an important validation of the Justice Department's options backdating probe, which has so far led to criminal charges against at least 10 executives.
Huge Spam Spike in Progress
"The scale of this stock pump-and-dump spam campaign is like nothing we've seen before," said Graham Cluley, a senior technology consultant at Sophos PLC.
New Pump and Dump Scheme Fuels 30% Hike in Spam
The spam messages, which are being sent to Internet users globally, have an attached PDF file urging them to buy shares in a company called Prime Time Group Inc., according to anti-spam software company.
August 6, 2007
Warning to Scots over fraudulent share sale operations
"Boiler room" fraud involves victims being cold-called by fake stockbrokers and persuaded to purchase shares in worthless, near-bankrupt or non-existent companies...
Adobe Acrobat's Unintended use: Spam and Stock Promotion (ADBE, CHCH)
If China Shoe Holdings is even a real company, they picked a sleazy promoter.
Stay away from These Stocks
With all the new Pink Sheets action, do you think average Joe investors take the time to read the Warning! Danger! Danger! disclaimers? For example...
August 4, 2007
Storm e-Mail work evolves as it wreaks havoc on the Net
Storm first spread to e-mail in-boxes in Europe and the USA in January — enticing recipients to click on a link for a fake news story about a deadly storm or other dramatic event. Clicking on the link turned the PC over to Storm's controller.
August 3, 2007
Pink Sheets' Signs Rank Risky Stocks
Beginning this week, investors may spot the skull and crossbones sign as a warning posted next to some specific stocks on the Pink Sheets Web site, which lists over-the-counter securities. The message is: Don't buy these stocks, instead run for cover...
Computer Worm Pumps Stocks
The Storm, a worm program which masquerades as an Internet greeting card from a friend or relative, has already infected millions of computers around the world and its reach is said to be expanding daily...
August 1, 2007
Acquitted but still a Hounded Man
The acquittals come a decade after Mr. Felderhof mused--perhaps in desperation -- that Bre-X had found up to 200 million ounces of gold in distant Borneo. He is now said to be a broken, bitter man. He recently went through an expensive divorce. Former investors and their lawyers continue to hound him. After recouping $84-million on the sale of Bre-X shares, he may not have much left. But he is not a crook.
Investors Left with "Fool's Gold"
Standing in the bright sunlight outside Old City Hall yesterday, defence lawyer Joe Groia was obviously pleased by the big win he had secured for his client...
Genoray Rapped for Worthless Stock Promotion
Investors were assured their money would be held in trust until Genoray obtained a stock exchange listing, the lengthy investigation showed.But the cash went into a promoter's bank account, and the firm never made it onto an exchange in Canada or the United States, the agency said.
July 29, 2007
Massivd Scam Scams infect whole World
According to several reliable sources, including Forbes.com, the Better Business Bureau and knowledge.wpcarey.asu.edu, it's one of the most notorious worldwide spam scams to hit the ether since the Internet rearranged life as we know it.
July 27, 2007
Muggles and Penny Stocks - There's no Magic to Financial Success
As a penny stock investor, I’m not really on the lookout for the next Wal-Mart, Berkshire Hathaway or Google. Why? There are lots of reasons. First, it’s important to know that penny stock investors do not follow the same trading patterns as their mid-to-large-cap peers.
Bush sides with Corporate Swindlers
In June, the U.S. Supreme Court made it harder for investors to sue companies and their executives for suspected fraud. Now, the Supreme Court will hear an appeal of an investors lawsuit that closely follows the arguments in an investor suit against the banks, investment firms and other accomplices in the multibillion-dollar Enron fraud.
July 23, 2007
Pump and Dump Scammers turn to Excel
Pump-and-dump stock scammers have begun using Microsoft Excel spreadsheets to deliver their get-rich-quick schemes, another in a series of moves they've made trying to slip past antispam filters.
July 19, 2007
Unwelcome Publicity: Company Victimized by Stock Spammers
So-called 'pump and dump' spammers sometimes buy large amounts of lightly traded stocks and then send out millions of spam messages inducing others to invest.
July 16, 2007
"Super Profit Stock Alert" Screamed the Email that landed in my inbox last week
The email said the current price of WW Energy shares were US3.4c but it was "expected" to grow to US50c – a handy investment return of 1370 per cent...
SEC Freezes Assets, Files Charges on $35M Scam
In the scam, two firms operated under the Amerifirst name. First is Amerifirst Funding and the other is Amerifirst Acceptance. The SEC named both in its suit as well as Jeffrey Bruteyn and Dennis Bowden, who ran the two companies, according to SEC documents.
July 13, 2007
SEC prosecutes $4.6M Spam Scam
The Commission alleges that Darrell Uselton and his uncle, Jack Uselton, profited from a 20-month scam by selling their shares of 13 separate penny stocks in a market they artificially pumped-up using spam emails.
Former Energy CEO Indicted in Stock Case
John Ehrman, who formerly headed Rocky Mountain Energy Corp., was charged in a 13-count indictment with securities fraud and making false Securities and Exchange Commission filings, according to a statement today by U.S. Attorney Don DeGabrielle.
July 12, 2007
Danny Devito thinks Crazy Eddie's life story is just Crazy enough to make a Compelling Movie
For New York residents in the early '80s, the only TV commercials more ubiquitous than the tourism campaign that would inspire the hearting of a great number of things were those of Crazy Eddie's--groundbreaking ads that entertained locals, while sensitizing them to the challenges faced by the mentally ill in accurately pricing stereo equipment...
July 11, 2007
Pink Sheets Runs new Investor Warning System up the Flagpole
So when the Jolly Roger flies on certain stocks, there is little doubt that it will attract some investors just as much as it pushes others away. Moreover, like a surgeon general's warning on a pack of cigarettes, it may just be ignored.
Securities-Fraud Suits Continue to Drop
Securities-fraud lawsuits, which dropped to a 10-year low in the United States in 2006, may stay at a lower level because of stepped-up market oversight by regulators, a study found.
Investor Avoids Prison in Bank Stock Fraud
An investor and former government lawyer was spared from prison for taking part in the illegal purchase of shares in a Connecticut bank's initial public offering. George J. Kundrat, 52, who pleaded guilty to conspiracy and cooperated with prosecutors, was sentenced Tuesday to five months' home confinement, followed by probation...
July 10, 2007
Wall Street Meets MySpace
Three decades after San Francisco-based Charles Schwab led an investor revolt against mainstream stock brokerages, an Internet start-up a few miles to the south is redefining the meaning of a discount brokerage.
July 9, 2007
SEC Charges 2 Men in Alleged Stock Scam
Federal regulators filed civil fraud charges Monday against two Houston-area men, accusing them of hijacking personal computers to send out spam e-mails and bilk investors out of $4.6 million.
July 8, 2007
Bank Robbery turns to Stock Scam?
For the past several months, former U.S. Army Ranger Luke Sommer, who is wanted in Washington for an armed bank robbery in Tacoma last year, has apparently collaborated with another international fugitive to promote essentially worthless penny-stock deals while under house arrest
July 7, 2007
House Arrest Fails to stop Scheme
Two high-profile fugitives collaborated to promote essentially worthless penny stock deals while under house arrest. For the past several months, U.S. army Ranger Luke Elliott Sommer, who is wanted in Washington state for a daring armed bank robbery last year, has helped Rakesh Saxena, who is wanted in Thailand for a bank fraud, with stock deals quoted on the nefarious OTC Bulletin Board in the United States.
July 6, 2007
SEC Freezes Dallas Firm's Assets
The U.S. Securities & Exchange Commission announced Thursday that it has won a temporary restraining order freezing the assets of Dallas-based Amerifirst Funding Inc. The agency claims the company ran a $35 million investment scam targeting the elderly.
SEC Claims Houston Fugitive Created New Scam.
After his release on bail in a federal criminal stock fraud case, Houston fugitive Harris Dempsey ''Butch'' Ballow organized another alleged scam that cost gullible investors at least $3 million, according to a lawsuit filed by the U.S. Securities and Exchange Commission...
Stock Fraud Scheme Quashed
Some investors bought into the scheme over the phone. Others would visit Campbell and Carlson in their Clearwater office. Sometimes the two would make house calls.
Fugitive in Investor Scam Thought to be in Panama
A Houston man accused of directing stock scams that have cost investors millions of dollars has been spotted in Panama and a $10,000 reward has been posted for information leading to his capture...
July 5, 2007
$1.58 Billion verdict denial appealed
Perelman sued over a 1998 deal in which Delray Beach-based Sunbeam purchased camping gear manufacturer Coleman from him using Sunbeam stock reportedly worth $600 million.The stock quickly collapsed after Sunbeam's financial problems became public. Perelman alleged that Morgan Stanley committed fraud when it advised him to accept the deal.
July 4, 2007
3 Plead Guilty in Voice-Mail Pump and Dump Swindle
Stock promoter Jeffrey S. Mills and telemarketer Roderic L. Boling III pleaded guilty to conspiracy and securities-fraud charges, averting a trial scheduled to begin Monday...
Man Admits Wireless Facilities stock fraud
A former Wireless Facilities employee pleaded guilty yesterday to bilking the San Diego company out of more than $6.3 million in an unusual stock options fraud case that has captured the attention of accountants nationwide.
IPO Activity at a Standstill in the first half of 2007: Report
As well, many of the IPOs were for much smaller, riskier companies on the TSX Venture exchange, with the share of new issues on the TSX falling to 35.1 percent from 63.2 percent.
July 3, 2007
The Short Squeeze That Never Was!
About two months ago, the prediction of Syntax-Brillian (BRLC) being the short squeeze of the year was first made; since then, the stock has lost about a third of its value. It appears many individuals are still spamming various internet stock message boards and blogs suggesting BRLC is the short squeeze of the year...
SEC Files Motion Vs Universal Express
The SEC, which made the request last Friday, also wants the two in jail until they account for the sale of almost 21 billion shares in unregistered stock issued so far this year...
July 1, 2007
Can Porn Go Public(ly Traded)?
Smaller businesses can go public via the Over-the-Counter (OTC) system, which has a more manageable regulatory structure and as a result lower compliance costs. The cost of going public OTC can be as low as US$100,000 up front, with recurring annual fees of tens of thousands of dollars...
June 30, 2007
ClearOne Still facing roadblock with NASDAQ
In a notice filed June 15 with the Securities and Exchange Commission, ClearOne referenced a Nasdaq letter pointing out that between 1989 and 1992, the SEC, five states and the National Association of Securities Dealers filed actions against Bagley and his brokerage, Bagley Securities. As a result of that action, Bagley and his brokerage were fined $162,262 for manipulating the shares of a penny stock company.
June 29, 2007
Cashing Out
Once you've had a big success with a penny stock, you may want to think logically about cashing out so that you maximize your advantages and benefits.
June 28, 2007
7 Common Investment Mistakes to Avoid
So in a nutshell I told him to stay away from this stock. Nevertheless he went ahead and took some exposure in the stock, as the seduction of making quick bucks was very high. Exactly 3 days down the line this stock is 18% down with 10% being knocked off in 1 day.
Anatomy of a Boiler Room Bust
Boiler rooms cold call investors and spin a great story about some shares they have obtained cheaply. Once they've sold a few hundred million, the support operation that has kept the price aloft is ended. Like a hot air balloon that's run out of fuel, the share falls to its natural level. I decided to try short-selling one of these promoted shares and discover whether there was easy money to be made...
June 27, 2007
Get Shortly
One of Europe's biggest hedge funds has been tripped up by accusations of illegal short selling in shares of U.S. companies...
June 26, 2007
Stock Spammers Regroup
Stock spam is typically used in a "pump-and-dump" scam, convincing recipients to buy shares of a penny stock with predictions of massive growth. After the stock price rises, the spammers sell their stake in the company at a large profit.
June 25, 2007
Former SEC Lawyer Fights SEC Suit
The Dallas lawyer, who earlier this year started a solo practice, was named as a defendant in a civil complaint filed by the U.S. Securities and Exchange Commission on June 14 in the U.S. District Court for the Eastern District of Michigan.
Regulator acts against Abusive BC-Based activity on US Over-The-Counter Market
In a speech to the Vancouver Board of Trade today, British Columbia Securities Commission Chair, Doug Hyndam, announced a new program that aims to disrupt, stop, and prevent locally based abusive junior market activity taking place in the U.S. over-the-counter markets.
June 24, 2007
Crime might not pay, But... It's a Tax Deduction
"Any loss resulting from a crime is a 'casualty loss' that is deductible," says Straus. "There are special rules for deducting business losses vs. personal casualty losses but, in general, a casualty loss as a result of a crime from fraud is a deduction."...
June 23, 2007
SEC Requests Receiver for Universal Express
The Securities and Exchange Commission, stating that Universal Express “appears to exist primarily as a vehicle for fraud,” has asked a federal judge to appoint a receiver to take control of it. Universal Express is a penny stock company that has sold billions of unregistered shares to the public.
Fairfield Investor Sentenced to Prison over Bank Fraud
A Fairfield investor who pleaded guilty two years ago to securities fraud in a New Haven Savings Bank stock fraud case was sentenced Friday to 12 months and a day in federal prison.
June 22, 2007
High Court Raises the bar for Investors Alleging Securities Fraud
The Supreme Court on Thursday made it easier for corporate defendants to seek and win dismissal of lawsuits filed by investors alleging stock fraud or market manipulation...
Spammers use PDF Files in the latest Pump-And-Dump Scam
Experts at SophosLabs, Sophos's global network of virus, spyware and spam analysis centers, have identified a German "pump-and-dump" stock spam campaign which uses an attached PDF file too hoodwink potential investors.
June 21, 2007
No, You're NOT Paranoid, The SEC IS out to get you...
If you think that the Securities and Exchange Commission extrudes those volumes of regulations to protect you the consumer, then I have a bridge to sell you; Quite the opposite. Those regulations that the SEC mandates actually make it nearly impossible for you to dream the big American dream. The chances of the ordinary investor getting a chance to invest in that little start up that will become the next Microsoft, IBM or CISCO Systems are slim to impossible, especially if the SEC has anything to do with it...
Usana faces Class Action Lawsuit
Independent distributors filed a proposed class-action lawsuit on Thursday accusing Usana Health Sciences Inc. (NASDAQ: USNA) of fraud and deception, the latest public-relations blow for the marketer of vitamins and nutritional supplements.
Resilience of Fraud
When it comes to Disclosures, Universal Express is not exactly a Model Company.
June 20, 2007
Pump and Dump goes "Legit"
When you receive an email touting the latest 'can't miss' penny stock, you know to hit the Delete key...
Stock Spam 2.0
The world's e-mail in-boxes are discovering a new, smarter form of stock spam. According to the e-mail security firm Ironport, billions of ju | |
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