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.

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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.

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Market will crash… don’t know catalyst: Marc Faber

Marc Faber

He’s calling for a 30 percent decline in the S&P 500.

The market is setting up for a big decline that could be as bad as the crash of 1987, according to Marc Faber, known as “Dr. Doom.” He just isn’t sure exactly what will set it off.

“The problem with crashes, you never know beforehand precisely what is the catalyst,” the publisher of the Gloom, Boom & Doom report told CNBC’s “Closing Bell.”

It could come from the credit market, equities being perceived as too expensive or a geopolitical event, he added.

Watch the video and read more.

His comments came a day after he told “Futures Now” that the asset bubble has begun to burst.

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Wall Street Week Ahead: Undervalued euro shares a hurdle for U.S. stocks

After Wall Street’s biggest weekly decline since June and the worst week this year for the Dow average, investors will be searching for a rebound. But the best gains may not be at home as investors take notice of an improved outlook in Europe.

Fund managers have started to shift to euro-zone equities after a series of economic indicators showed the region finally emerging from recession.

The region outperformed U.S. stocks in recent weeks, ending 0.2 percent higher this week while Wall Street underwent a 2 percent loss. For the month so far, the total return of euro-zone equities is around 1.9 percent compared to a 1.8 percent loss on the S&P 500.

The difference might also point to which parts of the U.S. market are likely to perform well after a long run by companies that do the lion’s share of their selling within America’s borders.

“The increase in volatility and uncertainty we’ve seen throughout the euro zone is finally coming to an end,” said Diane Garnick, chief executive of Clear Alternatives, an asset management firm in New York.

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Sharp Stands Up – In Court – Against Scam Site AwesomePennyStocks

While honest sites like FalconStocks.com get overlooked by scam sites with huge advertising budgets and outright lies, there are a few of us out there trying to stop scam sites like AwesomePennyStocks (fraud) from fleecing the public.

Last week, George Sharp, responded to the hundreds of emails and telephone calls he has received from wounded investors seeking retribution for losses, by joining his lawsuit as additional plaintiffs. As previously announced, Mr. Sharp has launched litigation (San Diego County Division of California Superior Court Case No. 37-2013-00048310-CU-MC-CTL) for violations of California Business and Professions Codes 17529.5 (Anti-Spam), during a scheme to disseminate spam emails in order to artificially create a marketplace for the stocks of worthless companies at artificially high prices, in what is commonly known as a pump and dump scheme.

Named as defendants in the case are: Degroupa Tenner Morales Media Corp. and Centro Azteca S.A., the current and former publishers of the Awesome Penny Stocks series of newsletters; and, Victory Mark Corp Ltd., the publisher of newsletters Select Penny Stocks, Preferred Penny Stocks and Penny Stock Heroes. Several companies promoted by the newsletters were also identified as defendants, including: Xumanii (XUII); Harbor Island Development Corp (HIDC); Red Giant Entertainment, Inc. (REDG); VuMee, Inc. (VUME); Pub Crawl Holdings, Inc. (PBCW); PacWest Equities, Inc (Pink Sheets:PWEI); Amwest Imaging, Inc. (AMWI); Goff Corporation (GOFF); Swingplane Ventures, Inc. (SWVI); World Moto, Inc. (FARE); Taglikeme Corp (TAGG); and, Pharmagen, Inc (PHRX), which was known as SunPeak Ventures, Inc and traded under the symbol “SNPK”, during that promotion.

In an attempt to stem the tide of inquires he is receiving, Mr. Sharp advises parties interested in seeking reimbursement for losses incurred due to these nefarious schemes, to contact legal counsel, as he is unable to add additional plaintiffs to his litigation.

Mr. Sharp also cautions investors not to invest in penny stocks promoted through email advertisements, as these are almost always devious attempts to separate innocent investors from their savings, by selling worthless near-worthless stock at heavily over-inflated prices. Mr. Sharp suggests exercising careful due diligence by examining company regulatory filings, including financial statements, found at SEC.gov and OTCmarkets.com.

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Wall Street Pares Losses

Disappointing earnings results weighed on the stock market in early trading on Thursday, following two steep drops this week.

The market didn’t get any help from economic news early Thursday.

The Labor Department reported that the number of Americans seeking unemployment benefits increased 4,000 last week to 352,000. The slight gain suggests that the sluggish hiring seen in March may not last. Applications are a proxy for layoffs.

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Why You Shouldn’t Give Retailers Your ZIP Code

When it comes to paying with plastic at the cash register, you know the drill. A quick swipe, a signature and the contents of your shopping cart are yours. But sometimes the cashier asks for one more thing:

“May I have your ZIP code, please?”

You may think it’s necessary to complete the transaction or it may seem like a harmless piece of information to give out, so you go ahead and reveal it.

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Euro, stocks edge higher, investors watching Cyprus

European shares rose after three days of losses on Wednesday with investors optimistic that European policymakers would make sure the crisis in Cyprus did not spread to other countries.

Cypriot leaders were holding talks in Nicosia to avert a financial meltdown after parliament rejected the terms of a European Union bailout while Finance Minister Michael Sarris was trying to secure a last minute loan deal with Russia.

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