Mostly what happens (I think, and this is just from the filings) he gets groups like Tangiers to "loan" money. The loan is always convertible to stock, in free trading shares. Most 'stock for $$ or services' transactions can't be traded for 6 months.
So the toxic financier (that's what Tangiers is) loans money for some scheme, it's not paid back, gets converted to shares, then the pump starts. During the time the stock is pumped Purdon issues himself more shares (for 'services', also free trading), he sells those into the pump along with Tangiers. Suckers like Jelly and Summers get sucked in even though they know it's a scam, it's like a pyramid scheme only they figure theirs more suckers left.
Tangiers isn't going to sue, they can't have people poking into their business, they're part of the game.
SEC has 1000 times more cases than they can handle, and a lot bigger than fleas like Purdon.
A turning point came when the scumbags had to start reporting who they were giving shares to and why, along with the status - restricted or free trading. Then, even morons like us could understand that there wasn't really gold in the mine, oil in the wells, or weed in the ground, it was all a scam.
BTW the biggest losers are probably the Amatos in Hopland CA. Purdon promised them millions in operational startup costs for a 300 acre weed farm, they sold everything they had to put it into the venture (which it turns out always had been illegal anyways). Purdon does his bit and pulls the financing which was never there in the first place but it made for a nice pump and he could unload a pile of QEDN shares that he made out of thin air.
So the Amatos would be a prime candidate for sue-age, except the father got a DUI, a felony for hitting someone with a beer mug, and is probably rotting in a Mendocino County jail somewhere. Amato the son got arrested for operating an illegal pot farm.
So here's the secret - take money from losers and other crooks, they either don't have the wherewithal to or also have something to hide.
Mattuca didn't fit into those categories, that's why he's the one. You also notice that it took him 7 years to win, he probably had to spend a chunk of change on legal fees, and he probably won't see a dime because it's hard to get $$ from a pile of horse excrement.
Maybe the only thing that works is to change the environment in which these a$$holes operate by calling them out. Hard though, almost every one of the people who trade here are in on the scam, everyone knows it's all BS, and this is really a casino.
