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The most interesting thing about that site is
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Wednesday, October 24, 2012 10:13:46 PM
The most interesting thing about that site is how it is used here on IHUB. Those Buyout rumors are replayed here on IHUB like they are real. Many posted without the fictional disclaimer. And let's face it with pump and dumps the n00bs take the bait.
My thoughts are some promoter set that up (probably male given the person "Sierra" in that picture is someone seen in porn video's online under another name) to use it as a tool for his frontloaded stocks. Let's face it - plenty of money is made frontloading a stock - especially these pennystocks - and no compensation is needed from the company or third party. so the argument "she" is not paid I don't accept. As I mentioned in an earlier post - "Sierra" is creative tool for sure. But is it legal? Can the person behind "Sierra" really put a disclaimer like that knowing full well the information is false and escape scrutiny because he posts a disclaimer like that? If proof existed traders or n00bs acted on those FALSE buyout rumors would that promoter not be considered fraudulent - as described in the SEC litigation regarding pump and dumps and Market Manipulations as well as Fraud Using “Research Opinions,” Online Investment Newsletters, and Spam Blasts.
the disclaimer mentions California - I will check with SF and LA SEC to see what they think.
“Pump-and-Dumps” and Market Manipulations
“Pump-and-dump” schemes involve the touting of a company’s stock (typically small, so-called “microcap” companies) through false and misleading statements to the marketplace. These false claims could be made on social media such as Facebook and Twitter, as well as on bulletin boards and chat rooms. Pump-and-dump schemes often occur on the Internet where it is common to see messages posted that urge readers to buy a stock quickly or to sell before the price goes down, or a telemarketer will call using the same sort of pitch. Often the promoters will claim to have “inside” information about an impending development or to use an “infallible” combination of economic and stock market data to pick stocks. In reality, they may be company insiders or paid promoters who stand to gain by selling their shares after the stock price is “pumped” up by the buying frenzy they create. Once these fraudsters “dump” their shares and stop hyping the stock, the price typically falls, and investors lose their money.
For an example of an actual case, see Securities and Exchange Commission v. Carol McKeown, Daniel F. Ryan, Meadow Vista Financial Corp.,and Downshire Capital, Inc., Civil Action No. 10-80748-CIV-COHN (S.D. Fla. June 23, 2010).
And does take action against FRAUD using newletters:
Fraud Using “Research Opinions,” Online Investment Newsletters, and Spam Blasts
While legitimate online newsletters may contain useful information about investing, others are merely tools for fraud. Some companies pay online newsletters to “tout” or recommend their stocks. Touting isn’t illegal as long as the newsletters disclose who paid them, how much they’re getting paid, and the form of the payment, usually cash or stock. But fraudsters often lie about the payments they receive and their track records in recommending stocks. Fraudulent promoters may claim to offer independent, unbiased recommendations in newsletters when they stand to profit from convincing others to buy or sell certain stocks – often, but not always, penny stocks. The fact that these so-called “newsletters” may be advertised on legitimate websites, including on the online financial pages of news organizations, does not mean that they are not fraudulent. To learn more, read our tips for checking out newsletters.
For an example of an actual case, see Securities and Exchange Commission v.Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume, Civil Action No. 11-cv-20413-DLG
(S.D. Fla. February 7, 2011).
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