Tag Archives: scammers

SEC and Justice Dept Investigate Firm Over Penny Stocks & Laundering

U.S. regulators are investigating  Oppenheimer Holdings for money laundering, penny stock sales and failure to supervise a broker that is no longer with the firm.

In March, the SEC and the Justice Dept. charged Vladimir Eydelman with securities fraud. Eydelman had worked for more than a decade at Oppenheimer in New York City, before leaving in 2012.



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.