Jul 23

Kourtland Wissler / Centerline Trades: Avoid at all costs

There is a lot that is very sketchy about Kourtland Kardashian (as he calls himself; his real name appears to be Kourtland Wissler). He has over 5 times the followers of Tim Sykes on Twitter (438,000 versus 84,000) despite his website CenterlineTrades.com being registered only in 2015 while Tim has been blogging / selling his services for 7 years and has been on TV numerous times. This makes me think that Kourtland bought followers in order to appear more popular than he is. Kourtland has also been accused of plagiarizing someone else’s work and then selling that material on Udemy.

 

Kourtland also makes some pretty implausible claims, such as turning $4000 into $25 million:

25m

 

or being called “the best technical analyst in wall street [sic] history” by Forbes (this is from his Udemy page):

greatestofalltime

Kourtland has two other courses on Udemy besides the allegedly plagiarized course. His courses are generally positively reviewed but the tone of the positive reviews and the distribution of scores of the reviews (all the positive reviews are 5 stars and mention no negatives) makes me think that most if not all of the positive reviews are fake. Here are all the reviews of one course:

udemy_reviews1

And here are the most recent reviews and the distribution of reviews on his other trading course (which appears to be identical to the first one):

udemy_reviews2

While the large number of glowing 5-star reviews on his Udemy courses makes me think that they are fake, he also has some testimonials on his website. I have no proof that those testimonials are fake but the images for most of them are taken from random places on the internet — only one of the testimonial photos appears to come from an actual person that is said to have written the testimonial.

The first testimonial is from “Doug Smith” aka smiling black guy with nice teeth:

centerline_testimonials1

Take a look at the reverse image search results on Google below: it appears Doug Smith also goes by the name of Brian Smith and is a satisfied patient of many dentists.google_image_search

In fact, Doug Smith is a stock photo:getty_images

Is there a real Doug Smith who wrote that testimonial? Maybe. But if he is real, why post a stock photo?

The second testimonial is from Rafe Jamison, aka hot guy with dog:

centerline_boy_dog

As with Doug Smith, it turns out that the photo is not of the testimonial writer but rather a photo of a model taken from The Daily Telegraph:centerline_testimonial_boy_dog_real_iamgeAgain, this is not proof that the testimonial is fake but it doesn’t inspire confidence.

The third testimonial, from Perry R, actually appears to have a photo of Perry R, who exists on LinkedIn at least:

centerline_3rd_testimonial_linkedin

 

The fourth testimonial, from Sarah Kemp, appears to be another stock photo:

sarah

cute_girl_smile

The fifth testimonial, from Scotty Arlie, SEO Guru at Bright Street, not only appears to show a photo that appears many other places on the internet but also purports to be written by an SEO (search engine optimization) expert that cannot be found via Google search. So if he is an actual SEO Guru he must be the most incompetent one in the world.

scotty guy_car_searchBelow are the results of my Google searches for “Scotty Arlie” and ‘”Bright Street” SEO':

brightstreet scotty_arlieFrom these searches, I conclude with high confidence that Scotty Arlie is not an SEO guru. And if the description of his job and company are false then I can conclude with moderately high confidence that he doesn’t exist and that the testimonial is therefore fake.

Disclaimer: I have no relationship with any parties mentioned above. Some of the information in this post was first mentioned online by a certain IRS-themed Twitter troll that I will not link to because he posts lots of misleading things as well as occasionally interesting information. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

 

Jun 19

SEC Suspends trading in Joymain International $JIDG

 

Joymain International (JIDG) had its trading suspended by the SEC on June 15th, 2015. The stock had been on an an incredible run and had achieved an insane $6 billion+ market capitalization. JIDG will reopen for trading on the grey market at the market open on June 29th, 2015.

SEC Trading suspension release (PDF)
SEC Trading suspension order (PDF)

 

jidgThe reason given for the suspension:

The Commission temporarily suspended trading in the securities of JIDG because of recent, unusual and unexplained market activity raising concerns regarding the adequacy and accuracy of publicly-available information, including information concerning Joymain’s financial condition and scope of operations.

The Commission acknowledges the assistance of FINRA in this matter.

Antoine Gara wrote about JIDG a week ago for Forbes.

Disclaimer: I have no position in JIDG. I have no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

 

Jun 19

SEC Sues promoter of and ex-CEO of former mailer pump Norstra Energy $NORX

Two years ago, Norstra Energy (NORX) was a postal mailer stock promotion. Approximately three months after the start of the promotion, trading in the stock was suspended by the SEC. Since then the stock has slowly but inexorably declined.norx

Yesterday the SEC sued Glen Landry, the former CEO of the company, and Eric Dany, the promoter of the stock two years ago.

See the complaint (pdf)

A few choice excerpts from the complaint:

1. From March 2013 to the present, Landry, the President and CEO ofNorstra, has made numerous materially false and misleading statements about Norstra’s oil reserves, drilling plans, and business prospects. These statements, for which Landry was solely responsible, appeared in numerous Norstra press releases and on its website, as well as in Commission filings
that Landry signed.

2. From April through June 2013, Dany, a stock-picking newsletter writer, made
materially false and misleading statements of his own about Norstra’s projected business prospects in spam e-mails and hard-copy mailers he was paid to endorse. Those materials touted Dany’s enthusiastic predictions ofNorstra’s business prospects that were both objectively and subjectively false.

Regarding Landry:

22. The Geologist never intended for his Reserve Report to be publicly disseminated or issued to anyone other than trained geologists; he had accepted Landry’s limited assignment to perform what Landry called “some rough calculations” ofOOIP.

23. Landry knew, or was reckless in not knowing, that the Reserve Report’s estimate of OOIP, as well as the amount of oil actually recoverable, depended on the existence of the favorable geological conditions that were unknowable until Landry and Norstra started to drill, but which the Geologist had assumed would be favorable to Norstra in making his estimates.
24. When the Geologist became aware that Landry and Norstra had disseminated his report to the general public, he revised the report to include disclaimers explaining the variables that had not been factored into his estimates and the difference between OOIP and recoverable reserve estimates. He attached the updated report to an email that he sent Landry on August 9,
2013 and asked that Landry replace the earlier report with this revised one. Landry did not respond to the email, and as of July 2, 2014, the original report was still displayed on Norstra’s website.

Regarding Dany:

46. In the Promotional Materials, Dany made three materially false and misleading claims. First, both theE-Mailer and the Mailer proclaim that “Norstra Energy could be sitting on top of as much as 8.5 billion barrels of oil!” That claim was baseless and was not one that Dany actually believed. In describing how he arrived at the 8.5 billion number, Dany has claimed that he used a complicated mathematical formula that relied on two undisclosed assumptions, neither of which had a basis in fact. First, he assumed that Norstra’s own estimated oil reserves per section should be increased by 300 per cent. And second, he assumed that Norstra’s intentions to acquire 10 times the acreage that it currently held would be realized.
47. In any event, neither undisclosed assumption supported Dany’s claim that
Norstra’s currently-owned “10,097 acres could hold as much a [sic] 8.5 billion barrels of original oil in place.” Because, by his own admission, Dany’s 8.5 billion estimate relied on Norstra’s acquisition of additional acreage it did not yet own, Dany could not have believed that its current acreage held that much.

Disclaimer: I have no position in NORX. I have no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

 

 

 

 

Jun 12

EMS Find $EMSF promoted via mailer

Get in soon before it is too late! EMS Find Inc (EMSF) is the Uber of ambulances! Ha! Of course it isn’t. It is just a worthless shell being manipulated in a pump and dump. Read more about the company at Promotion Stock Secrets. There is an online landing page at http://emsfreport.com/ and people have been receiving postal mailers since last week. Below is a photo of the front cover of the mailer (from this tweet):emsf_cover

Disclosed budget: $1,200,000
Promoter:  The Moskowitz Report / Charles Moskowitz / Tabius Sway Media Inc
Paying party:  Chesh Medial Ltd.
Shares outstanding: 28,334,535
Previous closing price: $2.34
Market capitalization: $66 million

 

Excerpt from disclaimer (from mailer):

TABIUS SWAY MEDIA INC. HAS PAID ONE MILLION AND TWO HUNDRED THOUSAND DOLLARS FOR THE DISSEMINATION OF THIS INFORMATION TO ENHANCE PUBLIC AWARENESS OF EMSF

Excerpt from disclaimer (from online landing page):

TABIUS SWAY MEDIA INC. PAID ALL OF THE COSTS ASSOCIATED WITH CREATING, PRINTING AND DISTRIBUTION OF THIS ADVERTISEMENT. CHESH MEDIA LTD HAS PAID EIGHTY THOUSAND DOLLARS FOR THE DISSEMINATION OF THIS INFORMATION TO ENHANCE PUBLIC AWARENESS OF EMSF.

Full disclaimer (from online landing page):

IMPORTANT NOTICE AND DISCLAIMER: THIS STOCK PROFILE SHOULD BE VIEWED AS A PAID ADVERTISEMENT. THE PUBLISHER, UNDERSTANDS THAT IN AN EFFORT TO ENHANCE PUBLIC AWARENESS OF EMS FIND INC AND ITS SECURITIES THROUGH THE DISTRIBUTION OF THIS ADVERTISEMENT, TABIUS SWAY MEDIA INC. PAID ALL OF THE COSTS ASSOCIATED WITH CREATING, PRINTING AND DISTRIBUTION OF THIS ADVERTISEMENT. CHESH MEDIA LTD HAS PAID EIGHTY THOUSAND DOLLARS FOR THE DISSEMINATION OF THIS INFORMATION TO ENHANCE PUBLIC AWARENESS OF EMSF. IF SUCCESSFUL, THIS ADVERTISEMENT WILL INCREASE INVESTOR AND MARKET AWARENESS, WHICH MAY RESULT IN INCREASED NUMBERS OF SHAREHOLDERS OWNING AND TRADING THE COMMON STOCK OF EMS FIND INC., INCREASED TRADING VOLUMES, AND POSSIBLY INCREASED SHARE PRICE OF THE COMMON STOCK OF EMS FIND INC. THE PUBLISHER HAS NOT UNDERTAKEN TO DETERMINE IF TABIUS SWAY MEDIA INC. IS, OR INTENDS TO BE IN THE FUTURE, DIRECTLY OR INDIRECTLY, A SHAREHOLDER OF EMS FIND INC. THE PUBLISHER MAY RECEIVE REVENUE, THE AMOUNT OF WHICH CANNOT BE DETERMINED TO ANY DEGREE OF CERTAINTY, AS A RESULT OF THIS ADVERTISING EFFORT AND THE ACCOMPANYING SUBSCRIPTION OFFER. THIS PUBLICATION IS NOT, AND SHOULD NOT BE CONSTRUED TO BE, AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY. THIS PUBLICATION, ITS PUBLISHER, AND ITS EDITOR DO NOT PURPORT TO PROVIDE A COMPLETE ANALYSIS OF ANY COMPANY’S FINANCIAL POSITION. THE PUBLISHER AND EDITOR ARE NOT, AND DO NOT PURPORT TO BE, BROKER-DEALERS OR REGISTERED INVESTMENT ADVISORS. ANY INVESTMENT SHOULD BE MADE ONLY AFTER CONSULTING A PROFESSIONAL INVESTMENT ADVISOR AND ONLY AFTER REVIEWING THE FINANCIAL STATEMENTS AND OTHER PERTINENT CORPORATE INFORMATION ABOUT THE COMPANY. FURTHER, READERS ARE ADVISED TO READ AND CAREFULLY CONSIDER THE RISK FACTORS IDENTIFIED AND DISCUSSED IN THE ADVERTISED COMPANY’S SEC FILINGS. INVESTING IN SECURITIES, PARTICULARLY MICRO CAP SECURITIES SUCH AS EMS FIND INC., IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THIS PUBLICATION IS BASED EXCLUSIVELY ON INFORMATION GENERALLY AVAILABLE TO THE PUBLIC AND DOES NOT CONTAIN ANY MATERIAL, NON-PUBLIC INFORMATION. THE INFORMATION ON WHICH IT IS BASED IS BELIEVED TO BE RELIABLE. NEVERTHELESS, THE PUBLISHER CANNOT GUARANTEE THE ACCURACY OR COMPLETENESS OF THE INFORMATION. THIS PUBLICATION CONTAINS FORWARD-LOOKING STATEMENTS, INCLUDING STATEMENTS REGARDING EXPECTED CONTINUAL GROWTH OF THE FEATURED COMPANY AND/OR INDUSTRY. THE PUBLISHER NOTES THAT STATEMENTS CONTAINED HEREIN THAT LOOK FORWARD IN TIME, WHICH INCLUDE EVERYTHING OTHER THAN HISTORICAL INFORMATION, INVOLVE RISKS AND UNCERTAINTIES THAT MAY AFFECT THE COMPANY’S ACTUAL RESULTS OF OPERATIONS. FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER INCLUDE THE SIZE AND GROWTH OF THE MARKET FOR THE COMPANY’S PRODUCTS AND SERVICES, THE ULTIMATE DEGREE OF SUCCESS IN THE COMPANY’S DRILLING EXCURSIONS, THE COMPANY’S ABILITY TO FUND ITS CAPITAL REQUIREMENTS IN THE NEAR TERM AND LONG TERM, PRICING PRESSURES, ETC.

 

Disclaimer from mailer (click to see full size):$EMSF Disclaimer

 

PDF copy of landing page

 

Disclaimer: I have no position in EMSF. I have no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

 

Jun 05

What we can learn from the fake Avon $AVP buyout offer

If you are going to manipulate stocks by putting out fake news, I have some advice:

1) Don’t do it. It is very easy to get caught and you will likely not make much money.
2) If you do put out fake news, at least don’t make the obvious (and easily traceable) trade of buying near-term out of the money call options and selling into the spike or buying a large position in the stock and selling into the spike.

While the alleged perpetrator of the fraudulent buyouts of Avon (AVP), Rocky Mountain Chocolate Factory (RMCF), and Tower Group (no longer trading; bought out at $1.50) did not buy just prior to putting out fake buyout offers, he already had large positions in those stocks. His filings submitted to the SEC were also traceable to his IP address despite using a proxy server. His methods were also similar in RMCF and AVP, which enabled the SEC to search only for people trading both stocks in large quantities around the fake buyouts, drastically narrowing the lists of suspects.

Matt Levine analysis of the frauds
Bloomberg News article on frauds
SEC complaint (PDF)

 

Disclaimer: I have no position in any stock mentioned. I have no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

Jun 03

Connect-a-Jet Scammer convicted for stock fraud, conspiracy

Back in September 2007 as I was first getting into shorting pumps and dumps, there was a huge mailer pump of a company that seemed to have a nice business plan — online booking of private jets. This company, Connect-a-Jet, was a complete sham and every press release put out by the company to coincide with the pump was a lie. I either did not short Connect-a-Jet at all or only shorted in very small size because I was scared of that fact that it was a non-SEC reporting company so I couldn’t be sure if they really had assets. That was foolish and a little investigation would have revealed the company to be a complete scam.

It is nice to see criminal convictions in these cases because prison terms are much more of a deterrent than SEC fines.

Martin Cantu, 58, a Round Rock [Texas] attorney, was convicted of conspiracy to commit securities fraud and securities fraud after a six-day trial.

He faces up to five years in federal prison and a $250,000 fine for conspiracy and 20 years and a $250,000 fine for securities fraud. He will be sentenced on Sept. 9 by U.S. District Judge Ed Kinkeade.

Stock promoter and company founder Jason Wynn, 32, of Lantana, Texas, pleaded guilty to conspiracy on April 30 and is awaiting sentencing.

Courthouse News Article
Dallas Observer article

Disclaimer: I have no position in Connect-a-Jet and no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

 

Jun 03

For the Record: Ecosciences landing page pump $ECEZ

So far this year no landing page pumps have gotten much volume and they have all done poorly, fading slowly for the most part. That is why I am slow to blog about this landing page pump on Ecosciences (ECEZ). If landing page pumps continue to get little volume I may cease blogging about them. I was first emailed the link to the landing page pump on May 14th at 7:00AM but ECEZ had previously been promoted last November by multiple different email promoters.

price-box

 

Disclosed budget: $350,000
Promoter:  Andrew Carpenter / Wall Street Revelator
Paying party:  Not disclosed
Shares outstanding: 101,751,500
Previous closing price: $0.53
Market capitalization: $53 million

 

Excerpt from disclaimer:

The advertiser anticipates managing a total production budget of $350,000 for this online advertising effort and will retain any amounts over and above the cost of production, copywriting services, mailing and other distribution expenses, as a fee for its services. The Wall Street Revelator and/or its publisher, Andrew Carpenter has received a total amount of eleven thousand six hundred and twenty five dollars in cash compensation to assist in the writing of this Advertisement, as well as potential future subscription and advertising revenues, the amount of which is not known at this time with respect to the publication of this

Full disclaimer:

IMPORTANT NOTICE AND DISCLAIMER: This sponsored advertising of Eco Sciences Inc. does not purport to provide an analysis of any company’s financial position, operations or prospects and this is not to be construed as a recommendation, or an offer or solicitation to buy or sell any security. The “Company” featured in this issue, appears as paid advertising, paid by a third party to provide public awareness for ECEZ. This Report has used outside research and writers using public information to create this advertisement. The third party owns no shares of ECEZ. Although the information contained in this advertisement is believed to be reliable, there can be no warranties as to the accuracy of any of the content herein and the publishers accept no liability for how readers may choose to utilize the content. Readers should perform their own due-diligence, including consulting with a licensed, qualified investment professional or analyst. Further, readers are strongly urged to independently verify all statements made in this advertisement and perform extensive due diligence on this or any other advertised company. The publishers are not offering securities for sale. An offer to buy or sell can be made only with accompanying disclosure documents and only in the states and provinces for which they are approved. Many states have established rules requiring the approval of a security by a state security administrator. Check with http://www.nasaa.org or call your state security administrator to determine whether a particular security is licensed for sale in your state. Many companies have information filed with state securities regulators and many will supply investors with additional information on request. The advertiser anticipates managing a total production budget of $350,000 for this online advertising effort and will retain any amounts over and above the cost of production, copywriting services, mailing and other distribution expenses, as a fee for its services. The Wall Street Revelator and/or its publisher, Andrew Carpenter has received a total amount of eleven thousand six hundred and twenty five dollars in cash compensation to assist in the writing of this Advertisement, as well as potential future subscription and advertising revenues, the amount of which is not known at this time with respect to the publication of this Advertisement and future publications. Andrew Carpenter has never owned, and never will own, shares, options or warrants in ECEZ. Further, specific financial information, filings, and disclosures as well as general investor information about publicly traded companies like ECEZ, advice to investors and other investor resources are available at the Securities and Exchanges Commission website www.sec.gov and www.nasd.com. Any investment should be made only after consulting with a qualified investment advisor and after reviewing the publicly available financial statements of and any other information about the company and verifying that the investment is appropriate and suitable. Investing in securities is highly speculative and carries a great deal of risk especially as to new companies with limited operations and no history of earnings. The information contained herein contains forward-looking information within the meaning of section 27a of the Securities Act of 1993, as amended, and section 21e of the Securities Exchange Act of 1934, as amended, including statements regarding expected growth of the featured company. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act, statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the Company’s actual results of operations. Forward-looking statements are based upon expectations, estimates and projections at the time the statements are made and involve risks and uncertainties that could cause actual events to differ materially from those anticipated. Forward-looking statements may be identified through the use of words such as expects, will, anticipates, estimates, believes, or by statements indicating certain actions may, could, should, or might occur. Any statements that express or involve predictions, expectations, beliefs, plans, projections, objectives, goals or future events or performance may be forward-looking statements. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the publisher notes that statements contained herein that look forward in time, which include other than historical information, involve risks and uncertainties that may affect the company’s actual results of operations. Factors that could cause actual results to differ include, but are not limited to, the size and growth of the market for the company’s products and services, regulatory approvals, the company’s ability to fund its capital requirements in the near term and the long term, pricing pressures and other risks detailed in the company’s reports filed with the Securities and Exchange Commission.

PDF copy of landing page

ecez

 

Disclaimer: I have no position in ECEZ and will not trade it unless it gets significantly higher volume. I have no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

May 27

NuGene International $NUGN Mailer pump

I must admit that I have not been following pumps as closely as I used to because so few of them have enough volume to be interesting to me. So I only noticed that NuGene International (NUGN) was being pumped by a 28-page glossy hard mailer when I saw this tweet about it. I checked Twitter and sure enough numerous people reported receiving the mailer promoting the stock over the last two weeks. Below is a shot of the cover of the mailer:

NUGN_mailer

Disclosed budget: $2,287,000 (likely exaggerated)
Promoter:  MicroCap MarketPlace / Casson Media Group Inc
Paying party:  Result Corporation
Shares outstanding: 39,584,673
Previous closing price: $3.24
Market capitalization: $128 million

[Update 6/26/20150: I received a NUGN mailer myself and just scanned it and uploaded it in two parts:

NUGN mailer part 1 (PDF)
NUGN mailer part 2 (PDF)

 

Excerpt from disclaimer:

Casson Media Group, Inc. (CMG), an affiliated company of MicroCap MarketPlace has received nine thousand dollars in cash compensation from Result Corporation, a third party shareholder of NUGN to assist in the writing of this Advertisement, and anticipates receiving potential future subscription and advertising revenues, the amount of which is not known and cannot be predicted at this time. Result Corporation, besides compensating CMG, paid two million two hundred and eighthy thousand dollars to marketing vendors to cover all the costs of creating and distributing theis Advertisement, including printing and postage, in an effort to build investor and market awareness.

nugn

PDF scan of full mailer

Disclaimer: I have no position in NUGN as I write this although I have traded it today and intend to trade it in the near future. I have no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

May 11

Riviera Tool Corp $RIVT does a NEST

When people ask why I prefer to trade penny stocks and preferably OTC stocks, my answer is that I prefer to trade against people who are less intelligent and experienced than I am. Considering all the smart people working at hedge funds I would likely be less intelligent and less experienced than the people trading big money on real stocks like Apple and Tesla. But every once in awhile the amount of stupidity I see in the trading of a stock astounds even me. Riviera Tool Corp (RIVT) is a recent example of this.

What happened with Riviera Tool Corp (RIVT)? After the market close on Wednesday, May 6th, the Detroit Free Press reported that Tesla (TSLA) was buying “Riviera Tool” of Grand Rapids, a tool and die supplier to Tesla. After Riviera Tool Corp (RIVT) started spiking Jason Shubnell of Benzinga reported the acquisition and specified that it was Riviera Tool Corp (RIVT) that Tesla was buying, which was wrong — it was Riviera Tool LLC that was acquired. Riviera Tool Corp had all its assets seized by creditors back in 2007 and had been an empty shell since then. For summaries of exactly how there came to be a public zombie shell Riviera Tool Corp and a private Riviera Tool LLC, see this SeekingAlpha article. After the market close on the first day Riviera Tool Corp was halted by FINRA (U3 halt)  and it remains halted as I type this. See the intraday chart of RIVT on the day it spiked.

Back in 2013 a similar situation happened with Nestor Inc. (NEST) after Al Gore talked positively about Nest (maker of the Nest learning thermostat). Dumb investors/traders bought the stock of Nestor, which at the time was essentially a shell company with no assets, thinking it was Nest Inc. Take a look at the intraday charts of NEST over the three days it ran up and then dumped back down (days 1 and 2; day 3). Here is a description of what happened. When Google acquired Nest in early 2014 Nestor Inc stock had another run. The NY Times Dealbook had a nice description of what happened then.

The Nestor / Nest confusion wasn’t even the only time that happened in 2013. In the same month that year there was lots of talk about Twitter (TWTR) going public and the company started filing paperwork for its eventual IPO. Traders then bought stock in bankrupt (and essentially worthless shell) Tweeter Inc (TWTRQ) and the stock shot up from 1 cent to 14 cents. Even after the first run up and a halt to change the ticker to THEGQ so that people would not be confused the stock had a second run up two weeks later and ran from 2 cents to 10 cents.

 

Disclaimer: This article has been edited to show that NEST had two separate dumb runs after news of Nest Inc. I am short 15,000 shares of RIVT at Interactive Brokers that I will look to cover when it reopens for trading. I have no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

Apr 29

Dwayne Bigelow arrested for pumping and dumping

Dwayne Bigelow, 46, a Florida resident, was arrested last week for his involvement in a wide-ranging scheme of stock promotion and manipulation. See the Department of Justice press release. He was charged with

one count of conspiracy to commit securities fraud and wire fraud (Count One), three counts of securities fraud (Counts Two through Four), and three counts of wire fraud (Counts Five through Seven). The securities and wire fraud charges carry a maximum term of 20 years in prison on each count, and the conspiracy charge carries a maximum term of five years in prison.

The thing about big pump and dump scams is that there are many different people involved: the people who run the companies and put out press releases, the stock promoters, nominee owners  and the insiders who run everything behind the scenes while making most of the money. While the complexity can make it hard to investigate a pump and dump, once some of the people have been charged criminally it becomes likely that they will then inform on others to get a better plea deal. This appears to be what has happened to Dwayne Bigelow. One of the three stocks mentioned in this indictment was SMCE, also mentioned in the Jamie Boye / Eric Cusimano indictment from a year ago. The other two stocks mentioned were also promoted by websites controlled by Cusimano or Boye or their associates: EWPI and SIRG.

From an email I received on April 5th, 2010 from Jackpotpennystocks.com:

Most of these pharma companies trade on pure speculation, but EWPI is a reality.  EWPI looks like like they could easily become one of the fastest growing small cap pharma companies in the game.

That matches the quote in the indictment.

The indictment can be read here.

 

Disclaimer: I have no position in any stock mentioned. I have no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

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