PSC, PennyStockChaser, was a penny stock promotion company touting their picks for about a year.
The SEC has shut them down.
“As alleged in our complaint, McKeown and Ryan used all the modern methods to communicate with investors
including the PennyStockChaser website, e-mail, text messages, Facebook, and Twitter
yet failed to adequately communicate that their rosy predictions for touted stocks were
accompanied by their sales of those very same stocks.”
said Eric I. Bustillo, Director of the SEC’s Miami Regional Office.
"The agency charged a Canadian couple, Carol McKeown and Daniel F. Ryan,with four counts of fraud for using their Penny Stock Chaser Web site and Facebook and Twitter feedsto promote a half-dozen companies’ stocks.What the two did not disclose to their followers, according to the complaint, filed in federal court in southern Florida,is that they were regularly selling shares in the companies they were hawking, a practice known as “scalping.”"
"According to the S.E.C.’s complaint, Ms. McKeown and Mr. Ryan began Penny Stock Chaser in the spring of 2009, promoting themselves as a husband-and-wife team that led a group of skilled stock pickers. Over the past year, their firm touted the stocks of at least 65 American companies. (The S.E.C. is pursuing the case in Florida because many of the couple’s trades were made in Boca Raton, although they were based in Montreal.)"
| "The agency contends that the duo received "millions of shares" of the touted companies through their two corporations, Downshire Capital Inc. and Meadow Vista Financial Corp., as compensation for touting stocks, then sold the stocks while the website simultaneously predicted massive price increases. The SEC says the couple and their companies have likely realized at least $2.4 million in sales proceeds from the scheme." |
from the wall street journal write up.
"The government is seeking injunctions against the two, along with the disgorgement of ill-gotten gains, plus interest and a fine as well as penny-stock bars against them and repatriation of assets to the government. "