MARKET SCAMS

[DueDillinger]

A state regulator gets it right and nails Geoff Eiten:

...since 2001 Goeffrey Eiten, acting individually and through various companies including National Financial Communications Corp and OTC Research Corp (such entities shall be referred to herin as the "Eiten Entities"), fraudulently and illegally acted as a "finder" brokering sales of securities to investors without being registered as a broker-dealer or a broker-dealer agent and provided investment advice in Massachusetts without being registered as an investment adviser under the Act. In addition, Eiten, through an intricate network of entities and straw accounts created to obscure the true nature of his activities, engaged in widespread "pump and dump" transactions by publicly promoting certain stocks at the same time he was selling them. The Enforcement Section also alleges that Eiten and his entities broadly disseminated false and misleading information and omitted material facts in their illegal efforts to provide investment advice...

Eiten, individually and through the companies he has set up, engages in a far-reaching, systematic and recurring practice of providing biased, conflict-of-interest-laden information to investors under the guise of providing independent and unbiased newsletters and financial advice. Deception is at the core of his business model.

http://www.sec.state.ma.us/sct/sctnat/eiten_complaint.pdf