SEC Charges Eleven in Stock Manipulation Ring

[jgbuz]

interesting I found this hope it hasn't been posted yet


http://www.complaintsboard.com/complaints/investorshubcom-c60662.html?sort=rate


http://ripoffreport.com/reports/0/326/RipOff0326940.htm

InvestorsHub.com Complaints - Scam and cheating!
Review all InvestorsHub.com complaints
InvestorsHub.com
Posted: 2008-04-18 by Stavross [send email]



Scam and cheating!

Complaint Rating:
Company information:
InvestorsHub.com
Freeman, Missouri
United States
www.InvestorsHub.com

From my observation, and in my opinion, Investors Hub has created a perfect venue for the free and open operation of criminal stock manipulators who seek to swindle independent low-price stock investors out of their money. Investors Hub (or IHub, as it's called) allows organized groups to take over individual stock forums or message boards. They become forum 'moderators' with the unique ability to delete the posts of others. These groups then act as an organized conspiracy to push forward a single agenda designed to promote the stock, with the intent to get people to buy shares and cause the price to move in the direction they want. This process is generally referred to as a 'Pump & Dump' scheme. As the stock price moves to an extreme level, this 'group' then cranks up the volume and increases the intensity, further touting the finer points with a relentless stream of exaggerations and distortions and outright lies; that is called 'The Pump'. While they are doing this they quietly sell out their own shares and take their profit; that is called 'The Dump'. Selling their while urging others to buy more shares is highly dishonest, unethical, and immoral!

To some observers this activity can be very clearly seen. And if they try to counter-balance this activity by posting messages of comment or asking questions for verification of dubious claims, they are immediately disparaged, insulted, attacked, or falsely accused of wrong doing in order to undermine their credibility. In this way this treacherous fraud is allowed to continue and flourish. If they should persist and further complain or otherwise resist these attacks their posts are then deleted, one after another, under the ruse of being 'off topic', or several other feeble and superficial excuses. And complaining to the web site management does nothing more that cause them to further facilitate this fraud by actually censuring or banning the complainants. And ultimately banning them from the very forums where the activity is happening. In this way the complainers are silenced while the success of the perpetrators is guaranteed.

The interesting point of all of this is that these stock manipulators are invariably fee-paying members of the site. So IHub collects fees from this ongoing 'alleged' criminal activity. This must be why IHub management has not taken any action except to move to protect and facilitate this process. I maintain that these, so called, 'membership fees' are little more than veiled bribes to protect wrong doers, who are making substantial profit from this, while most shareholders suffer major losses. And this process repeats endlessly on many forums unrestrained 24/7/365. When the situation is viewed in its entirety, it can only be understood as a well-organized conspiracy to defraud the public, while operating in open view, under the protection of the IHub organization. This is organized crime.

Unfortunately, complaining to the authorities (SEC) does little good, as the standard response is that it is all the investor's fault for being involved in such low quality stocks. Caveat Emptor!