Less than a month ago the SEC suspended trading in PacWest Equities (PWEI). I speculated at length about the reason for the trading suspension. PWEI was suspended by the SEC after only three days of promotion by Awesomepennystocks.com although the stock had previously been promoted a year earlier by Victory Mark Corp. PWEI gapped down 90% when it reopened for trading on the grey sheets and since then it has dropped a further 90%.
Only a day after the SEC suspension of PWEI, Awesomepennystocks promoted Pacific Clean Water Technologies (PCWT). Awesomepennystocks.com stopped promoting PCWT after October 8th and after that PCWT dropped and then bounced strongly Friday. After the close Friday the SEC announced a trading suspension.
To my knowledge he SEC has not previously suspended trading in stocks after the close — normally that happens before the market open. But with Monday being a bank and government holiday (but not a stock market holiday) it makes sense for the SEC to issue the suspension after the market close rather than wait until Tuesday morning. The end of the stock promotion, the huge drop in the stock, and PCWT hiring a securities law firm to investigate trading in its stock (announced Friday at the market open) indicate that insiders and promoters likely believed that an SEC enforcement action was coming.
With two consecutive SEC trading suspensions on penny stocks promoted by Awesomepennystocks.com it appears increasingly likely that the SEC is not just investigating Awesomepennystocks.com but is getting close to acting suing it.