Category: Stock Promotions

I haven’t kept up with John Babikian (evidently the man behind Awesomepennystocks.com, perhaps the most successful stock promoter of its time) for the last couple years as not much has happened with him. But I did notice a few things have happened that I had not recorded on this blog, so here they are.

Babikian’s (now ex-) wife dropped her suit against Babikian in LA Superior Court three years ago. I have no clue what happened to the divorce proceedings (those are normally sealed in Quebec).

Request to drop suit (pdf)
Order dropping suit (pdf)

In October 2016 Jean-François Cloutier of Journal de Montreal wrote about Babikian’s former associate Robert Kalfayan and his alleged attempts to remove money from Canada to allegedly escape seizure by the tax authority (article in French). See previous article on Revenue Québec getting a lien on Kalfayan’s home.

Meanwhile, the SEC’s case against Anthony Thompson, Jay Fung, and Eric Van Nguyen (associated with Awesomepennystocks predecessor websites) continues. That case is:

1:14-cv-09126-KBF Securities and Exchange Commission v. Thompson et al
Katherine B. Forrest, presiding
Date filed: 11/17/2014

Currently the case is stayed pending the resolution of the parallel criminal case against Thompson, Fung, and Nguyen and the CEOs of five penny stock companies. If the criminal case (supposed to go to trial on September 27, 2017) does not immediately go to trial the civil case may continue per request of Thompson’s attorneys (docket 70; PDF copy). Below is the judge’s decision (hand-written on the last page of docket 70)

The criminal matter is New York State Court (Manhattan Supreme Court) case 3853/14. See the press release about the original indictment.

Back on May 16th, 2016 the judge ordered a bunch of the charges dropped, including larceny charges, because they were deemed not to fit the crime. The order described in that article can be found on Justia.

I should mention that while the promoters were the ones who became infamous, they were not the alleged mastermind(s). Instead, that was allegedly Kevin Sepe (who was not charged in the case). From the statement of facts in the order I linked above:

STATEMENT OF FACTS

The indictment arises from 9 alleged fraudulent “penny stock” “pump and dump” schemes. A penny stock is one which trades for less than $5 per share, is not listed on the NASDAQ and requires limited disclosure, making investments more risky and volatile. The company shares in this case traded for pennies or fractions of pennies but the conduct here also involved millions of shares. Those companies and their ticker symbols (the symbols which designated the companies on the market) were: Blast Applications (BLAP), Blue Gem Enterprises (BGEM), Recyle Tech (RCYT), Hydrogenetics (HGYN), Xynergy Holdings (XYNH), Mass Hysteria Entertainment Company Inc. (MHYS), Lyric Jeans (LYJN), SunPeaks Ventures (SNPK) and Smart Holdings (SMHS) (hereinafter sometimes referred to as the “subject companies”).

The architect and orchestrator of the scheme was Kevin Sepe. The remaining defendants, as described infra, were either affiliates of Kevin Sepe or stock promoters who worked with him to implement the alleged frauds. The Defendants’ work with the companies followed a similar pattern. A publicly traded “shell” company (a company with no substantial business) would be [*3]identified and Mr. Sepe and his affiliates would then act to merge a private company they controlled into the shell company. This allowed the shares of the new company to be freely traded without a waiting period. Money would be loaned to the company and then the loan would be converted into equity through the receipt of shares of the company stock as a substitute for the repayment of the debt. A stock promotion would then take place. Typically, there would have been very little trading in the company’s stock prior to the promotion. Immediately prior to the beginning of the promotion, however, some shares might be leaked into the market so that regulators would not see that a company went immediately from having no shares traded to a large trading volume.

The shares held by Sepe and his affiliates would rise in value following the promotion. Sepe and his affiliates would sell the shares at huge profits. The promotional campaign would then end. The share price would then rapidly decline. Kevin Sepe and his affiliates knew, in advance, that the stocks would follow this pattern pursuant to the beginning and end of internet marketing campaigns and scheduled and coordinated their stock sales accordingly. In each case, the sales and profits followed the pre-arranged pattern.

A key part of the scheme was to conceal the fact that Kevin Sepe controlled a vast portion of the trading shares. To conceal his ownership, his shares were placed in the names of multiple loyal nominees including Defendants Luz Rodriguez and Joseph Dervali who then sold their shares and split the profits with Kevin Sepe. In addition to concealing his ownership and control, having shares held by these nominees allowed Sepe to evade requirements that persons who held more than 5% of the shares of a company be disclosed.

Kevin Sepe was sued by the SEC back in 2012 for his involvement in the pump and dump of Recycle Tech and HydroGenetic and he settled that case. “Sepe agreed to disgorgement of $1,416,466.16, prejudgment interest of $126,761.86, and penalties of $185,000 as well as a permanent bar from participating in an offer or sale of penny stocks.” As with most SEC settlements, Sepe neither admitted nor denied the allegations in the settlment.

Disclaimer. No position in any stocks mentioned and I have no relationship with anyone mentioned in this post. 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.

As I wrote back in April, FINRA fined Scottsdale Capital Advisors $1.5 million for doing a really poor job at preventing illegal sales by penny stock insiders (FINRA Rule 2010). The owner, John J. Hurry, was barred from the industry. The full 111-page FINRA decision can be found on their website. Unfortunately FINRA prevents direct-linking so you need to go to http://disciplinaryactions.finra.org/Search/ and then enter “John Hurry” as the name. I have downloaded a copy of the decision in case they delete it.

From the FINRA report:

The Respondent firm violated FINRA Rule 2010 by selling securities without
registration and without an exemption, in contravention of Section 5 of the
Securities Act of 1933. The firm’s owner, Respondent John Hurry, also
violated Rule 2010, because he engaged in activities designed to enable the
unlawful transactions and evade regulatory scrutiny.

The Respondent firm and its Chief Compliance Officer, Respondent Timothy
DiBlasi, violated NASD Rules 3010(a) and (b) and FINRA Rule 2010 by
failing to establish and maintain a supervisory system, including written
supervisory procedures, reasonably designed to ensure that the firm
complied with Section 5 of the Securities Act.

The Respondent firm and its President, Respondent Michael Cruz, violated
NASD Rule 3010(b) and FINRA Rule 2010 by failing to supervise and failing
to respond appropriately to numerous red flags indicative of unlawful
unregistered distributions.

The Respondent firm is fined $1.5 million. Hurry is barred in all capacities.
He would also be fined $100,000, but, in light of the bar, the fine is not
imposed. DiBlasi is suspended for two years and fined $50,000. Cruz is
suspended for two years and fined $50,000. In addition, Respondents are
ordered to pay costs, for which they are jointly and severally liable.

From the same FINRA report, John “Hurry is a threat to the investment public.” The SEC must agree because on June 5, 2017 they sued Alpine Securities, which is another broker specializing in penny stocks owned by John Hurry.

The FINRA report on Scottsdale and Hurry describes the close relationship among them, Alpine Securities, and CSCT, which was based in the Cayman Islands.

Respondent Hurry thus owns and controls all three firms involved in the transactions at
issue in this proceeding-Scottsdale, Alpine, and CSCT. In fact, the three firms were almost a
self-contained system for processing and distributing microcap securities. CSCT did all its
business through Scottsdale, and Scottsdale in turn did all its business with Alpine. Alpine’s
current CEO described Alpine as a small”boutique” clearing firm with a focus on the kind of
business brought to it by CSCT. No independent third party was involved in preparing,
approving, or clearing the deposits of stock certificates by CSCT at Scottsdale for resale.

SEC litigation release against Alpine Securities
SEC complaint against Alpine securities (PDF)

From the litigation release against Alpine Securities:

Securities and Exchange Commission v. Alpine Securities Corporation

Civil Action No. 7:17-CV-4179 (S.D.N.Y., filed June 5, 2017)

SEC CHARGES BROKERAGE FIRM WITH FAILING TO COMPLY WITH ANTI-MONEY LAUNDERING LAWS

Washington D.C., Jun. 5, 2017 – The Securities and Exchange Commission today charged a Salt Lake City-based brokerage firm with securities law violations related to its alleged practice of clearing transactions for microcap stocks that were used in manipulative schemes to harm investors.

To help detect potential securities law and money-laundering violations, broker-dealers are required to file Suspicious Activity Reports (SARs) that describe suspicious transactions that take place through their firms. The SEC’s complaint alleges that Alpine Securities Corporation routinely and systematically failed to file SARs for stock transactions that it flagged as suspicious. When it did file SARs, Alpine Securities allegedly frequently omitted the very information that formed the bases for Alpine knowing, suspecting, or having reason to suspect that a transaction was suspicious. As noted in the complaint, guidance for preparing SARs from the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) clearly states that “[e]xplaining why the transaction is suspicious is critical.”

The SEC’s complaint charges Alpine Securities with thousands of violations of Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-8.

From the complaint, the SEC alleges:

This case concerns Alpine’s practices relating to filing Suspicious Activity
Reports (“SARs”) with the U.S. Treasury Department’s Financial Crimes Enforcement Network
(“FinCEN”). Alpine acts as a clearing firm for many microcap over-the-counter (“OTC”) stock
transactions. Since 2011, Alpine has cleared thousands of deposits of microcap securities, most
of them involving Scottsdale Capital Advisors Corp. (“Scottsdale”) as the introducing broker,
and many of which were used as part of various stock manipulation and other schemes

Alpine’s alleged failures with regard to filing suspicious activity reports (SARs) seem egregious:

Systematically omitting from at least 1,950 SARs material, “red-flag” information of
which it was aware and was required to report under its own BSA Compliance
Program, such as a customer or issuer’s criminal or regulatory history, evidence of
stock promotion, or whether a customer was a foreign financial institution, including
at least 1,150 SARs which included only the customer name, date of deposit, dollar
value of deposit, and the name of the security deposited;
• Filing SARs only on the deposit of stock in approximately 1,900 instances in which
the stock was subsequently liquidated, but failing to file required SARs on subsequent
related transactions such as the liquidation, or transfer of funds resulting from the
liquidation, even though it had identified the deposit of the security as suspicious; and
• Failing to file at least 250 SARs within the required 30 days after the date the
suspicious activity was detected.

Alpine has previously been investigated and cited by FINRA for inadequate SARs in 2012 and 2015.

Lest anyone think that these are just minor paperwork deficiences with no real consequences, I remind you that one pump and dump alone, Biozoom (BIZM), led to over $17 million in fraudulent profits for manipulators / insiders, and many of their accounts were at Scottsdale Capital Advisors.

One interesting thing I noticed: this lawsuit against Alpine Securities came on June 5th, which is exactly the day that the bar against a couple employees of Scottsdale Capital Advisors began. From the FINRA complain from April (emphasis mine):

V. CONCLUSION

The Firm, Scottsdale Capital Advisors, violated FINRA Rule 2010. Accordingly, it is
ordered to pay a fine of$ 1.5 million. John J. Hurryviolated FINRA Rule 2010. For his
misconduct he is barred from association with any FINRA member in any capacity. He would be
fined $100,000, but, in light ofthe bar, the fine is not imposed. Timothy B. DiBlasi violated
NASD Rules 3010(a) and (b) and FINRA Rule 2010. For his misconduct, he is suspended for
two years from association with any FINRA member in any capacity and fined $50,000. D.
Michael Cruz violated NASD Rule 3010(b) and FINRA Rule 2010. For his misconduct, he is
suspended for two years from association with any FINRA member in any capacity and fined
$50,000.

Respondents are also ordered to pay costs in the amount of$22,124.29, which includes a
$750 administrative fee and $21,374.29 for the cost of the transcript. If this decision becomes
FINRA’s final disciplinary action, Hurry’s bar will take immediate effect. DiBlasi’s and Cruz’s
suspension will begin with the opening of business on June 5, 2017 The fines and assessed costs
shall be due on a date set by FINRA, but not sooner than 30 days after this decision becomes
FINRA’s final disciplinary action in this proceeding.

Disclaimer. I have no position in any stock mentioned above. I was long BIZM when trading in it was suspended by the SEC and lost money because of that. 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.

This morning prior to the market open the SEC issued a trading suspension for Global Quest Limited (GLBB), which has been promoted over the last few weeks and which has risen from $1 to $5.65 to give it a market cap of $56 million market capitalization.

SEC trading suspension release (PDF)
SEC trading suspension order (PDF)

The reason given for the trading suspension (emphasis mine):

The Commission temporarily suspended trading in the securities of GLBB because of concerns regarding the accuracy and adequacy of information in the marketplace, including on Global Quest’s website, regarding the company’s business operations. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).

The Commission acknowledges FINRA’s assistance in this matter.

While there may have been others promoting Global Quest, one promoter was Wall Street Giants. Here is an excerpt from their disclaimer:

This release is not without bias, and is considered a conflict of interest if compensation has been received by WSG for its dissemination. To comply with Section 17(b) of the Securities Act of 1933, WSG shall always disclose any compensation it has received, or expects to receive in the future, for the dissemination of the information found herein on behalf of one or more of the companies mentioned in this release. For current services performed WSG has been compensated one million two hundred thousand dollars for coverage of the current company (GLBB) featured by a non-affiliated third party. WSG HOLDS NO SHARES OF GLOBAL QUEST LTD (OTC: GLBB).

GLBB will resume trading on the grey market (no market makers) at the open on May 26, 2017.

Disclaimer. No position in any stocks mentioned and I have no relationship with anyone mentioned in this post. 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.

One of the more venerable online trading newsletters is BuySellShort.net, run by Ciaran Thornton (@buysellshort on Twitter). I’ve been aware of him for over a decade (though I never subscribed). He has 60,000 followers on Twitter (compared to my 30,000) and has written for TheStreet.com (although his last article was in 2014). He also wrote articles on SeekingAlpha.com (which have since been removed).

Evidently not content to make money running a stock trading newsletter, Ciaran Thornton was paid for positive articles that he wrote about some stocks, without disclosing that compensation. He was sued along with 26 others by the SEC last week. See the SEC’s order against Thornton (PDF). Following are quotes from that order. Thornton settled with the SEC, neither admitting nor denying the allegations.

On the basis of this Order and Respondent’s Offer, the Commission finds:

SUMMARY
Between April 2013 and February 2014, Ciaran Thornton violated the anti-fraud and antitouting provisions of the federal securities laws by publishing various communications describing issuer securities on investment websites that purported to be independent when, in fact, they were paid promotions.

Here are the SEC’s findings of fact (emphasis mine):

Between April 2013 and February 2014, Thornton published 15 articles and one blog entry on investment websites SeekingAlpha.com, Benzinga.com and SmallCapNetwork.com, using the pseudonyms Stock Investor, Itradethebios, and BuySellShort. Thornton’s publications positively described the securities of the following six issuers that were clients of Lidingo, or another stock promotion firm affiliated with Lidingo: Arch Therapeutics, Inc., Assured Pharmacy, Inc., Galena Biopharma, Inc., NeoStem, Inc. (now Caladrius Biosciences, Inc.), OncoSec Medical Incorporated, and Stevia First Corporation (now Vitality Biopharma, Inc.). Lidingo paid Thornton $600 for each publication, for a total of $9,600.

4. Thornton did not disclose that these articles were paid-for promotions or the amount of the compensation he received. Moreover, in nine articles, Thornton misrepresented that he was “not receiving compensation” for the article. These nine articles were published on Seeking Alpha’s website. Thornton falsely stated that he was not receiving compensation because, at the time, Seeking Alpha had a policy that expressly prohibited compensated articles. Thornton’s misstatements regarding his compensation were material.

5. Thornton’s articles included positive descriptions of publicly-traded stocks. Seeking Alpha held itself out as a “platform for investment research, with broad coverage of stocks, asset classes, ETFs and investment strategy” where “articles frequently move stocks, due to a large and influential readership which includes money managers, business leaders, journalists and bloggers.”

Thornton was fined as follows:

Respondent shall, within 14 days of the entry of this Order, pay disgorgement of $9,600, prejudgment interest of $858.65, and a civil monetary penalty in the amount of $20,000 to the Securities and Exchange Commission for transfer to the general fund of the United States Treasury

While this seems like a slap on the wrist, it is still nice that the SEC caught him (and other people listed in the press release that I will discuss in a following blog post). One of the most basic things you learn when blogging about stocks is that you must not lie about conflicts of interest. While it is legal (though not ethical) to receive payment to tout a stock, that payment must be disclosed. Also, if a trader writes about a stock they have a position in, they should disclose it (and failing to disclose it lead to an SEC suit if the trader is prominent enough).

Perhaps the most important lesson is one that I hope my blog readers have learned long ago: never trust other people’s analysis of stocks (no matter where you see that analysis appear) — many people lie or they may just be stupid and their analysis wrong.

Disclaimer. No position in any stocks mentioned and I have no relationship with anyone mentioned in this post except that I have written for SeekingAlpha in past years for which I received small compensation from SeekingAlpha based on how many people read the articles. Also, I can be seen as being something of a competitor to Ciaran Thornton as I make some money from my Profit.ly affiliate links. I also receive compensation from Tim Sykes for moderating his chatroom, etc. 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.

I have been remiss in not posting much over the last months (and years!). While in 2016 I traded almost no pump and dumps because so few were successful and so few even had decent volume, 2017 has had several successful pumps and now several high-profile SEC trading suspensions of stocks in mid-pump. I look at these in reverse chronological order and then address common themes and what we can expect in the future.

Bingo Nation (BLTO)

Bingo Nation was a landing page pump: http://wallstreetblaze.com/blto/index.html (at the time I write this that page is still online). At its peak on April 11th ($3.10) it had a market capitalization of $85 million. Trading was suspended on April 12th, 2017.

Archived PDF copy of landing page

Excerpt from disclosure on landing page (emphasis mine):

The “Company” featured herein appears as paid advertising, paid by a third party to provide public awareness for (BLTO). The publisher, Wall Street Blaze, understands that in an effort to enhance public awareness of (BLTO) and its securities through the distribution of this online advertisement, Star Step Limited paid all of the costs associated with creating, and distribution of this advertisement. The publisher was paid the sum of two thousand five hundred dollars for its contributions. The marketing vendors will be managing a total budget of three hundred thousand dollars, provided by Star Step Limited for all online advertising and marketing efforts 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.

SEC trading suspension release (PDF)
SEC trading suspension order (PDF)

Reason for suspension (from above order):

concerns regarding (i) the accuracy and adequacy of publicly available information in the marketplace, including on Bingo Nation’s website and multiple third party promotional emails and articles relating to, among other things, the company’s existing capacity to generate near-term revenue provided on both Bingo Nation’s own website and, since at least March 20, 2017 through April 5, 2017, to multiple third party promotional emails and articles from different sources (at least one of which is also available on Bingo Nation’s own website); and (ii) potentially manipulative transactions in Bingo Nation’s common stock.

Bingo Nation will resume trading on April 28th on the grey market.

Emedia Group (EMMD)

eMedia was promoted via emails, primarily from QRC Investment Group. At its peak of $4.17 on March 24th, eMedia Group had a market cap of $83 million. Trading was suspended on April 4th, 2017 (also suspended at the same time were IMMG and EURI below).

SEC trading suspension release (PDF)
SEC trading suspension order (PDF)

Reason for suspension (from above order):

concerns regarding the accuracy and adequacy of assertions by EMMD in press releases to investors concerning the company’s assets and business operations and because of potentially manipulative transactions in EMMD’s common stock. Specifically, the company issued press releases dated February 13 and February 21, 2017 in which it described acquisitions by the company of a hotel-booking website portal and a flight- and hotel- booking mobile application.

eMedia Group will resume trading on April 19th on the grey market.

Immage Biotherapeutics (IMMG)

Immage Biotherapeutics (IMMG) was promoted via emails, primarily via QRC Investment Group. At its peak at $1.62 on April 3rd it had a market cap of $245 million.

SEC trading suspension release (PDF)
SEC trading suspension order (PDF)

Reason for suspension (from above order):

concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in IMMG’s common stock

AgriEuro Corp (EURI)

AgriEuro Corp had been promoted via emails in February and March 2017 and it was formerly a FinestPennyStocks pump and dump at the beginning of 2016. At its peak of $0.225 on March 21st it had a market cap of $57 million.

SEC trading suspension release (PDF)
SEC trading suspension order (PDF)

Reason for suspension (from above order):

concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in EURI’s common stock

George Sharp, anti-fraud pro-se legal gadfly (and former promoter himself), proposed that the reason for the suspensions of EMMD, IMMG, and EURI was that they all were connected at some point to attorney Scott Lawler. I am not convinced of that. That EMMD and IMMG were promoted by QRC Investment Group makes me think the SEC could be targeting that stock promoter. Of the suspended stocks, IMMG and EURI just received the boiler plate explanation for why they were halted. The EMMD halt order specifically mentions two of the company’s press releases and the BLTO halt order mentions the company’s revenue projections on its website. One thing is clear: the SEC is still active in fighting pump and dumps and those promoters and stocks that attract its attention have a significant risk of having trading in their shares suspended. The most prominent stock promotion is currently Zenosense (ZENO) so I think there is a decent chance it will be suspended.

Disclaimer. No position in any stocks mentioned and I have no relationship with anyone mentioned in this post. 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.

Friday morning the SEC suspended trading in Preston Corporation (PSNP) which had just been promoted by OTCMagic.com the prior evening. The reason given by the SEC:

The Commission temporarily suspended trading in the securities of PSNP because of questions regarding the adequacy and accuracy of available information about Preston Corp. in light of a false statement about the permitting status of a mine in the company’s August 10, 2016 press release and questions regarding the adequacy and accuracy of clarifications Preston Corp. provided in a September 1, 2016, press release about the mining project.

SEC trading suspension (PDF)
SEC trading suspension order (PDF)

PSNP should resume trading at the open on September 19th.

There is also an online landing page promoting PSNP at http://theprofitletter.com/psnp/index.html (PDF copy for posterity).

Disclaimer from landing page (emphasis mine):

LEGAL DISCLAIMER: Past performance does not guarantee future results. The information contained herein might contain “forward-looking” statements and/or information regarding expected growth of a public company. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, the publisher notes that all information other than historical information, including statements contained herein that look forward in time, involve risks and uncertainties relating to the company’s actual results of operations. “Forward-looking” statements are based upon expectations, estimates and/or projections at the time the statements are made and involve risks that could cause actual events to differ materially from their anticipated unfolding. “Forward-looking” statements may be identified through the use of words such as expects, will, anticipates, estimates, believes, or by statements indicating certain events may, could, should, or might occur. Any statements that express or involve expectations, beliefs, predictions, plans, projections, objectives, goals or future events or performance may be “forward-looking” statements. Factors that could cause actual results to differ include, but are not limited to, the company’s ability to fund its capital requirements in the near term and the long term, the size and growth of the market for the company’s products and services, regulatory approvals, pricing pressures and other risks detailed in the company’s reports filed with the Securities and Exchange Commission. Securities investment is inherently speculative, carries a degree of risk, and may result in the loss of invested capital. The publisher has relied upon historical information and third-party sources in the evaluation of the company Preston Corporation (hereinafter “Preston”). This paid advertisement does not purport to provide a comprehensive analysis of any company’s financial position, operations, or prospects and this is not to be construed as a recommendation, offer or solicitation to buy or sell any security. All information herein is provided for entertainment purposes only and should not be relied upon when making an investment decision. The dissemination of this information might increase public awareness for Preston and thereby be considered a conflict of interest for the paying party or paying parties for this advertisement. Although the information contained within this advertisement is believed to be reliable as of the time of publication, there are no warranties as to the accuracy of any of the content herein and no advice is given as to how readers should or may choose to utilize its content. The information contained herein is based exclusively on information generally available to the public. Readers should perform their own due diligence before investing in any security, including consultation with a qualified and registered investment advisor or analyst within their residential jurisdiction. Furthermore, readers should independently verify all statements made in this advertisement and perform extensive due diligence on this or any other advertised company. The authors and/or endorsers and/or publishers of this advertisement might have received compensation for this and/or related marketing materials relating to Preston. More information can be retrieved from Preston’s corporate website. Furthermore, Preston’s financial information, filings and disclosures can be found at the Securities and Exchange Commission website at www.sec.gov, or appropriate regulatory agency in foreign countries. No one featured in this advertisement represents himself or herself to be a registered investment broker, advisor, or dealer of financial securities. This is not an offering of securities for sale. An offer to buy or sell securities can be made only with accompanying disclosure documents and only within the states and provinces wherein such an offer is acceptable for sale. This advertisement is not intended for readers in any jurisdiction where such advertising is not permissible by local regulations, and readers in those jurisdictions should therefore disregard it. Research and any due diligence was conducted by an outside researcher during the creation of this advertisement. Readers should consult with a qualified and registered investment advisor prior to investing in any securities, and they should thoroughly review the financial statements and other corporate filings about any companies in which they have an interest in investing. Many states have established rules requiring the approval of a security for sale by a state security administrator. Check with www.nasaa.org or call your state security administrator to determine whether a particular security is licensed for sale within your jurisdiction. This stock profile should be viewed as a paid advertisement. The publisher, The Profit Letter, understands that in an effort to enhance public awareness of PSNP and its securities through the distribution of this advertisement. Craigburn Corp. paid all of the costs associated with creating, printing and distribution of this advertisement. Craigburn Corp. is managing a production budget of up to three hundred thousand dollars. The publisher was paid the sum of two thousand five hundred dollars for his contributions. 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 PSNP, increased trading volumes, and possibly increased share price of the common stock of PSNP. The publisher has not undertaken to determine if Craigburn Corp. is, or intends to be in the future, directly or indirectly, a shareholder of PSNP. 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 PSNP, 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 business strategy rollout, the company’s ability to fund its capital requirements in the near term and long term, pricing pressures, etc.

Disclaimer. I have no position in any stock mentioned above. 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.