Category Archives: Pump & Dumps

Chinese police bust $7.6B Ponzi scheme

Chinese police have arrested 21 people involved in the operation of peer-to-peer (P2P) lender Ezubao, the official Xinhua news agency said on Monday, over an online scam it said took in some 50 billion yuan ($7.6 billion) from about 900,000 investors.

Ezubao was a Ponzi scheme, the Xinhua report said, and more than 95 percent of the projects on the online financing platform were fake.

Among those arrested were Ding Ning, the chairman of Yucheng Group, which launched Ezubao in July 2014.

It was not possible to reach Ezubao officials for comment and it was not clear if Ding had legal representation.

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Free Penny Stock Picks Can Cost You Thousands

At least 99% of free penny stock picks websites are making money off of you, hand over fist. They make many times what legitimate penny stock websites like ours can ever do. At the same time, they lie, publish misinformation and pretend to have researched the penny stocks they pick.

The fact is, they are not researchers, they don’t care if the company is even real.
Free Penny Stock Picks
The dirty secret they don’t want you to know?

They Are Paid To Pick That Stock!

 

The truth is one of two things (and you can verify this every time):

1) Someone paid them to promote the stock, so they could SELL when telling you to buy!

2) The website owns shares and are selling, profiting off the rise in price! You are buying THEIR shares!

Facts:

-They are not producing real research, they are paid to “pump” the stock.

-They are paid in either cash or in shares of stock, or both.

-While telling you to buy now, they are selling everything they can and cashing in.

-If paid in cash, a large shareholder (possibly an executive) is selling and cashing out.

-Their “Disclaimer” (usually hidden) will reveal how much they were paid.

Why does this happen?

Simply put, many penny stocks do not trade much volume. Because of that, any increase in buying will push the price higher and allow sellers to cash out – at higher prices. It is worth it for the CEO or other large shareholder to pay a website $10,000 to pump their stock if it means they can sell hundreds of thousands of shares at much higher prices!

We see it time and time again. As long as the promoting website or newsletter discloses they are being paid, it’s technically legal. But they are skilled at hiding that and relying on the fact that most people will believe them without checking.

The newest scam has these same penny pumpers telling you they are watching the same promoters and you can profit off of the move when a promotion starts. They pretend to be traders, with a free site or penny stock newsletter, of course. They’re there to help you make money off of those darn pumpers! The fact is, they are the penny pick pumpers. It’s just another lie to get you to believe they’re working for you. Of course they are, your money!

A great example of a “pump and dump” scam is one we told our readers about in December and January. North Springs Resources (NSRS) was a classic.

At the time the campaign started, NSRS had reported a total of $16 (That’s just 16, as in $16.00) in cash on hand and property worth $59,990. $60,589 was reported in total assets. And yet, the stock had a market capitalization of $300 million.

Just before the start of the penny stock pump, the President, Harry Lappa filed for numerous stock splits so that he now owned a total of 500 million shares of NSRS.

The company then filed an 8-K stating they were working on a deal to acquire mineral rights to a property purported to have gold deposits. The only claim made at all was that the property was part of the “prestigious Mineral Ridge Mining District, Esmeralda County, Nevada”. That means nothing. It could be a parking lot and still be part of that district.

The company hired Carrillo Huettel, LLP as corporate counsel. The same firm that was ordered by a Federal judge to hand over its bank records as it was being accused of stock fraud. Good company, no?

AwesomePennyStocks.com was paid to promote the penny stock and did so through its affiliates effectively – as usual, by PRETENDING to look like they do penny stock pick research, and HIDING the fact they were being paid. Hundreds of emails and notices sent out to investors over and over. Of course, they never mentioned any of the news about the President, or the Corporate Counsel, none of that, just how exciting the land acquisition was! Of course, the company never intended to actually buy the land, just issue press releases that it “intended” to. If you believe that they really intended to, I have some lovely Florida swampland – no, make that “lake-front property” to sell you.

Now, the biggest scam of all that day was this: Fake bids being placed to buy shares of stock. Take a look at the Level II screen showing the massive bids of over 2.5 million shares showing.Level II Quotes on a Penny Stock Those are there to keep the sellers thinking it might be going higher so they stay back while the President sells all he can. Those huge bids always stay below other bids so they are never actually buying shares. It’s all a show, a scam.

After more than a decade working on trading floors, I can tell you one fact: Market-Makers WOULD NEVER show 2,000,000 shares to buy even if they had an order. Never! Showing your large order would cause the price to rise, making you and your client have to pay higher prices. That is NEVER done. What we have here is fake bids being placed hoping to push the stock higher. Why? Because they are actually selling.

Here is a chart of the penny stock pick pump scheme. As you can see, when the emails and touting ended, the stock fell off the cliff. Guess who still owned shares when that happened? Guess who had already sold all of theirs?

Penny Stock Chart for NSRS

There are very few penny stock pick websites our these like ours that are not paid to promote. We provide pure, honest research in small companies. If you decide to join a penny stock newsletter or penny stock website, please read their disclaimer first! Find out if the are paid or can be paid, and find out if they own or can own shares of the stock. If so, STAY AWAY! Many say they are not paid – but they own shares – that is the SAME as being paid!

Our only financial interest is in keeping our subscribers happy so they come back again and again. Doing it the honest way, our way, means making much less money. But we can sleep at night.

– See more at: http://falconstocks.com/freepennystockpicks.html#sthash.lgXLMd70.dpuf

Free Penny Stock Picks Can Cost You Thousands.

At least 99% of free penny stock picks websites are making money off of you, hand over fist. They make many times what legitimate penny stock websites like ours can ever do. At the same time, they lie, publish misinformation and pretend to have researched the penny stocks they pick.

The fact is, they are not researchers, they don’t care if the company is even real.
Free Penny Stock Picks
The dirty secret they don’t want you to know?

…Continue Reading

How the “Free” penny stock pick websites scam and make money

At least 99% of free penny stock picks websites are making money off of you, hand over fist. They make many times what legitimate penny stock websites like ours can ever do. At the same time, they deceive, publish misinformation and pretend to have researched the penny stocks they pick.

The fact is, they are not researchers, they don’t care if the company is even real.

The dirty secret they don’t want you to know?

Free Penny Stock Pick Websites – How They Scam You

At least 99% of free penny stock picks websites are making money off of you, hand over fist. They make many times what legitimate penny stock websites like ours can ever do. At the same time, they deceive, publish misinformation and pretend to have researched the penny stocks they pick.

The fact is, they are not researchers, they don’t care if the company is even real.

The dirty secret they don’t want you to know?
Free Penny Stock Picks

Cynk, the Penny Stock that was, trades again

The Belize company with a stock price that went from 6 cents a share to over $21, washalted by the SEC. It fell to $2.10 on Friday, its first trading day after a 10-day suspension.

Cynk shares bounced between $1 and $2 a share.

At one time, the market capitalization rose to $6 billion. Technically not a “penny stock” at that time.

 

Stick with real companies, truly unbiased penny stock picks.

Cynk: The $6 Billion Penny-Stock Debacle (Another ‘AwesomePennyStocks.com’ Scam)

Cynk Technology (CYNK), a company with no assets, no revenue, and one employee, for one hour in July had a market value of more than $6 billion.

Cynk had started trading in 2013, for a few pennies. That was until June 17, 2014, when shares that were at 6¢ jumped to $2.25.

In filings with the Securities and Exchange Commission, Cynk lists its offices as the The Matalon, a six-story glass building in Belize City, Belize – Suite 400. There is no Suite 400. The building manager says the company has never had an office there. There aren’t any $6 billion companies in Belize.

One of the biggest boosters tied to Belize, AwesomePennyStocks, was able to stay anonymous until the Bugatti- and Lamborghini-driving 26-year-old behind it was sued in March by U.S. regulators. He settled on July 7 for $3.6 million without admitting the allegations.

Cynk: The $6 Billion Penny-Stock Debacle

 

Shailesh Shah pleads guilty to stock scam

WASHINGTON, DC: The CEO of two publicly-traded companies in the US, Shailesh Shah, was convicted on charges that he paid kickbacks in return for purchases of his companies’ stock.

Shah, 48, of Chino, Calif., pleaded guilty before U.S. District Judge Richard G. Stearns to two counts of mail fraud and two counts of wire fraud, according to a press release issued by the FBI. His sentencing is scheduled for October 23 of this year.

Shah was the President and Chief Executive Officer of SOHM, Inc. and Costas, Inc.

Broker Ordered To Pay $1.3 Million In Stock Scam

FORT MYERS, Fla. (CN) – Wayne Burmaster and accomplice Edward Hayter sold unregistered shares to investors, misrepresenting them as stock in a hospitality holding company, according to a federal complaint the Securities and Exchange Commission filed in 2010.

Burmaster and Hayter used a fake name, touted  him as an “accomplished entrepreneur,” and made false statements in press releases to convince the public to invest in their penny stock.

Selling tens of millions of unregistered shares to several companies, one of which was Burmaster’s, for little or no payment, the brokers managed to increase the price, making money at investors’ expense, the Commission claimed.

10-Count Indictment For Penny Stock Fraud Unsealed

Penny stock scam artists have been around as long as stocks themselves. Another indictment, unsealed this past week involves the ex-husband of “Sopranos” star Jamie-Lynn Sigler.

penny stock scammer

AJ Discala, ex-husband of Jamie-Lynn Sigler, arrested in penny stock scam

Abraxas J. Driscala, CEO of OmniView Capital Advisors, as well as six others were charged  with manipulation in Brooklyn, New York.

As always, be careful out there! Stick with UNBIASED sources for any stock (especially penny stock) ideas. FalconStocks.com is the only unbiased penny stock picks newsletter that has actual Wall Street experience.