Stock Ethics and Philosophy 101

[jonnytrade]

Wow this hits the nail on the head.

[nowwhat2]

Listen to The Unborn Future: Lecture # 1 | Utopic Realism https://player.fm/series/ideas-2434977



https://www.cbc.ca/radio/ideas/transcript-the-unborn-future-lecture-1-utopic-realism-by-todd-dufresne-1.6067907

[waterchaser]

Huggy, did you block me intentionally? I tried to PM you but I’m blocked.

[Huggy Bear]

They are a plague upon society.

[waterchaser]

The lack of morals and dignity on the scam OTC is despicable.

Authorities should shut the entire scam down and throw the promoting perps in jail.

[waterchaser]

If you choose to “play” in the OTC cesspool, you stand a good chance of being surrounded by shady characters... both inside the company and outside the company. The SEC estimates that the average return on the OTC is MINUS 62%, meaning for every dollar risked, $.28 is returned. Personally, I avoid penny stocks like the plague and invest in big board stocks exclusively.

[Huggy Bear]

This board is not for discussion of specific stocks.

[waterchaser]

Nope, no confusion.

https://investorshub.advfn.com/boards/memberpoststoboard.aspx?userid=99749&boardid=11895

[WALL STREET KID]

I think you have me confused with someone else, please read the whole post Sir

I will not buy a single share more until Tony is gone, said it in October when I sold for a loss and saying it again. Would be glad to provide you screenshots once a week going forward. That's a reminder to me to stick to my rules and not get greedy and to listen to my gut went from being 147k in the green to 60k in the hole



I get tar and feathered for point out statistically this one becomes a Trip in the Summer but my targets are higher



So I got this reply from



From someone saying this repeatedly for months and months





I'm sure you recall what it's like when presenting statistics, facts and past performance

I myself just curate Press Released and Company Websites & Social Media and rarely have I given Timelines Or Prices on a ticker on Ihub and when I do I'm usually very conservative

Have A Good Night Sir

[waterchaser]

Thanks, but I don’t align with scam OTC stock promoters. Find someone else to further your cause.

[WALL STREET KID]

Hey Waterchaser there is room at the table for six at RBII aka RSII and it's a worse dog than ever. They have been releasing CAANOPHEN and TSW PAIN CREAM for 2-3 years depending on the product, made a whopping 2k the last earnings, have a yield sign, and are selling notes at 30% discount rather than Par with a 30k buy in minimum

[Huggy Bear]

This is a fantastic post.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=137998300


Couldn't agree more. The scourge of non disclosing promoters, Section 3(a)(10) abusers (both the company and the toxic financiers) and shell hijackers has reached epidemic status.

And it is all fueled by moral-less traders who think that making money by any means necessary equates intelligence and success.

It does not. It reflects the deterioration of every principle which founded this nation in the first place.

In the sewer the Gordon Gekko and Jordan Belfort types are lauded as king.

The love of mammon at the expense of your fellow man.

[brojazzy]

Great board here with some great information!

[ThoughtPower]

Yes. Totally... it's a spider web anymore.

[Huggy Bear]

Another troublesome decision by the SEC to allow Twitter to be used to communicate with the public.

Too many scam artists using it in lieu of actual disclosures and way too easy to pump out misleading information in this fashion.

And of course the myriad of non disclosing promoters use it to barrage with misinformation as well.

[ThoughtPower]

great board, too bad it doesn't see a bit more action.

I'm seeing a lot of twitter pumping directly from ceos... they dangle the carrot, and then out of nowhere, you'll see some top name iHubers roll in, post up a storm, then disappear...

only to be followed by the ceos magically tweeting "almost done" or "update coming soon" thereafter....

It is what it is, but have to wonder about this new electronic paper trail, if you will.... how far down the rabbit hole does it go...

Until then,

Happy thoughts...

[Huggy Bear]

Rare, this board is for discussing ethics, or more appropriately, lack of ethics, in the penny stock market.

No touts here please.

[Homebrew]

Ok, "promoting"

No pumping at all WYY heading a lot higher jack!

[rarefind]

No pumping at all WYY heading a lot higher jack!

[waterchaser]

I believe you came to the wrong board to pump a stock.

[rarefind]

Golden cross forming as the turn around for WYY gains strength. WYY alerted it on progressive stocks board in the high 30s / .40 cent range. Turn around is gaining strength.Do some DD peeps....

[Huggy Bear]

Thanks WC. Just watched that last night. Amazing. I am going to have to watch it again.

[waterchaser]

This is worth watching. It aired in Canada last night... remember "Awesome Penny Stocks"?

[Huggy Bear]

Agree on all points sir.

I work with the feds too.

Slower than Moses wandering in the desert. Yet very effective boasting a conviction or plea rate of over 98%

[Frayed Knot]

Exactly Mr. Stone, the cons will continue no matter what "restrictions" are applied.

I have stated it many times on other boards but one of my favorite shows is American Greed. It is mind boggling what cons can get away with.

Just watched one the other day, he got over $200 Mil. He went so far as to make the con look legit by buying a warehouse. He also sprinkled a grain of truth in what he was stating. $100Mil VA contract..he did have a VA contract, it was for $25K... just a little different. One guy was so sure it was all very legit he lost $22Mil. This con was one of the best I have seen on AG.

Side note I have worked with the SEC and the FBI. All I can say is SLOW SLOW SLOW.

But then we all know how slow they are because of Bernie Madoff......as just one "small" example.

Be glad to help with the research....

[Frayed Knot]

I appreciate you positive attitude Water. I have been mano y mano with a couple of guys myself. It must be what inspires me to continue watching the stocks on ihub.

It does get to be overwhelming, doesn't it.

[Huggy Bear]

Make all stocks SEC reporting and ban the gagged transfer agent BS.

And there will still be gritters, con men and their willing accomplices.

[waterchaser]

I wish there were more time in the day to discuss the frauds on the OTC here on the Ethics Board... But I find myself battling the fraudsters Mano y Mano instead. One day the good guys will prevail and this cesspool known as the OTC will be shut down for good.

[RainerRocks]

Hey,

Heads up, The link no longer works.

[buccaneer1961]

but can anybody recommend a lawyer per my post on the dd/fraud board last night in the tampa area?

[newpontiac]

Tip and Referral Center

http://pcaobus.org/Enforcement/Tips/Pages/default.aspx

http://pcaobus.org/News/Releases/Pages/07092015_Enforcement.aspx

[Huggy Bear]

Thanks for sharing.

[newpontiac]

New Tools

One in five Americans over 65 have been a victim of financial fraud

“The idea of having a national approach and database makes it easier to catch these guys,” Deutch said.

http://www.whitesecuritieslaw.com/tag/boca-raton-financial-scams/

https://buchanan.house.gov/media-center/press-releases/buchanan-bill-protects-seniors-scams

“South Florida has long known that seniors make lucrative targets for financial scam artists peddling everything from fraudulent investment offers to bogus home repairs,”

establishing an effective complaint system to ensure that reports of fraud are quickly forwarded to the appropriate law enforcement agency.

Deutch also is proposing giving the U.S. Securities and Exchange Commission the ability to pursue heightened civil penalties against businesses that mislead investors over the age of 62

[newpontiac]

http://www.bizjournals.com/southflorida/news/2015/04/14/sec-charges-boca-raton-startup-with-11m-penny.html

http://www.bizjournals.com/southflorida/news/2015/04/17/south-florida-men-aretwo-of-10-charged-for.html

[newpontiac]

Dirty Rotten Scoundrels

There is an entire industry made up of boiler shop weasels who do nothing but telemarket the elderly all day hoping to find one in this state on whom they can unload penny stocks and sleazy annuities.

Just witnessed this happen to a friends dad, Air Force Captain, WW II pilot, one of the smartest men I know.


http://seekingalpha.com/article/3239846-the-biggest-threat-to-your-retirement-portfolio-mild-dementia?google_editors_picks=true

[Huggy Bear]

No, they don't. They intend to honor their published quotes for the size indicated. They're required to do that.

Market makers are clearing houses. They are not permitted to short shares. Do some bend the regulations, probably.

[Huggy Bear]

Good question. I don't know but will look into that.

[6pack2go]

So I just read this article:

http://www.nytimes.com/2015/04/22/business/dealbook/trader-in-britain-arrested-on-charges-of-manipulation-that-led-to-2010-flash-crash.html?_r=0

...and the last sentence was this:

Mr. Sarao was charged in a federal criminal complaint in the Northern District of Illinois on Feb. 11 with one count of wire fraud, 10 counts of commodities fraud, 10 counts of commodities manipulation and one count of “spoofing,” a practice of bidding or offering with the intent to cancel the bid or offer before execution.

Now I have to ask, doesn't all MMs do 'spoofing'?

[Huggy Bear]

Happy New Year. Fight the good fight.

[waterchaser]

Holy crap. Is there any end to these OTC scams? Where is the SEC?
Just the number of IHUB PnD's makes me wanna puke. Can you imagine the rest of the Internet pumps being run? The dollars being wasted and lost in this cesspool is astonishing.
I give my extra money to a no kill animal shelter... many innocent lives saved. I feel good about that.
Happy New Year fellow ethical human beings.
I'm stepping off of my soapbox now.

[DeeDog]

I'm glad to see they're working on this broken penny stock system. I don't think anyone believes it will be fixed quickly, but I think they're building steam in the right direction. The sad thing about it is they could take out most of the penny stock market, but they're taking them down to the pink level where they can be easily spotted. There's still the respectable few who can pay the annual $10k fees to maintain the upper levels in the OTC, but that still leaves few who won't dilute.

There's very few penny stocks like CMGO who will work hard to make money the old fashioned way, without dilution or taking on toxic debt to line their pockets at the shareholder expense, in other words, without selling shares. CMGO subsidiary Good-Gaming.com has finished most of the beta testing and is now public with open tournaments, awarding prizes up to $10k. They are charging only $4.99 monthly for the first 25k gamers to sign up and they have pros available to help gamers advance from amateur status up into the pro levels. I don't know anything about gaming but I sure like the stock and I think it's about to make another jump up to the .03's or higher.

You don't see 5 and 10 baggers often with this kind of stock, they depend on increasing profits and growing business to give the shareholders a slow and steady gain over time, but still more than you can make on the big boards...and not by selling shares. The only thing to watch for on these stocks is retail (and other) traders who will manipulate stocks any way they can, and that's hard to prove. Still, we're making headway.

[Huggy Bear]

Yup. Check out SIMH. Enough said. Classic pump and dump. Classic illegal promotion. Classic company dumping into a willingly ignorant get rich quick crowd.

Too bad the frontloaders always seem to get away with everyone's money.

Good news out to the main office today though:

Ceresney elaborated on how the theory has been put into practice. “It’s not about turning every violation into an enforcement action,” he said. “What it’s about is targeting important rules [where] we’ve seen a pattern of lack of compliance,” and using the cases “to send a strong message about the need for compliance.”

SEC Enforcement Leaders Debate Broken-Windows Policy

October 14, 2014 5:26 PM EDT
http://www.nationallawjournal.com/legaltimes/home/id=1202673370778/SEC-Enforcement-Leaders-Debate-BrokenWindows-Policy?mcode=1202615432600&curindex=1&back=NLJ&slreturn=20140914180607

U.S. Securities and Exchange Commission Enforcement Division head Andrew Ceresney on Tuesday defended the agency’s “broken windows” policy of cracking down on minor violations during a panel discussion with five former directors of the division, who argued the agency is being too harsh.

The message from SEC staff is “any violation and you’re in the soup,” said Wilmer Cutler Pickering Hale and Dorr partner William McLucas , who led the enforcement division from 1989 to 1998. “There’s zero tolerance.”

The remarks came during the Securities Enforcement Forum in Washington, where last year SEC Chairwoman Mary Jo White introduced the broken-windows concept. “The theory is that when a window is broken and someone fixes it, it is a sign that disorder will not be tolerated,” she said. “But when a broken window is not fixed, it ‘is a signal that no one cares, and so breaking more windows costs nothing. The same theory can be applied to our securities markets—minor violations that are overlooked or ignored can feed bigger ones.”

Ceresney elaborated on how the theory has been put into practice. “It’s not about turning every violation into an enforcement action,” he said. “What it’s about is targeting important rules [where] we’ve seen a pattern of lack of compliance,” and using the cases “to send a strong message about the need for compliance.”

For example, he said, executives and corporate insiders need to file paperwork about buying and selling securities in their companies. “That’s critical to investors,” he said. In September, the SEC charged 28 officers, directors or major shareholders with failing to promptly report information about their holdings and transactions.

“It is not about stepping away from the larger, more intent-based violations. In fact, to the contrary,” Ceresney said. “That’s what we’re trying to foster, a broad sense that there needs to be compliance across the board.”

But Davis Polk & Wardwell partner Linda Chatman Thomsen, who was enforcement director from 2005 to 2009, questioned whether the punishments fit the crime.

“Are the sanctions and reactions responsive to the underlying conduct?” she asked. “There was a time when if you came in and said “I missed a filing,” someone would say ‘Correct the filing,’” she continued. “Then there was a time when something might happen, but it wouldn’t involve a penalty. Now we’re seeing matters where they truly look like, relatively speaking, modest violations with, relatively speaking, large sanctions. And that, to a certain extent, that may backfire in terms of encouraging cooperation … because the reaction is disproportionate.”

McLucas agreed, noting that the cases involve people who are “not a threat to the markets, didn’t steal, didn’t commit fraud, but they’re going to get named,” he said. “The perception out here in this environment is if you catch one that doesn’t meet the six-inch test, you don’t throw it back.”

Former U.S. District Judge Stanley Sporkin, who headed the enforcement division from 1974 to 1981, didn’t see it that way. “I don’t know why this is news,” he said. “You go back to my day, you can’t be a law enforcement commission if you don’t enforce the rules. If you’ve got to comply, you’ve got to comply, that’s all there is to it.”

He turned to McLucas, who joined the SEC in 1977 under Sporkin. “We even brought a failure to file 16a case criminally, remember that, the Friedman case?”

“I’ve erased it from my memory,” McLucas said to laughter. “Whose side are you on here? [Ceresney] doesn’t need any encouragement.”

http://www.nationallawjournal.com/legaltimes/home/id=1202673370778/SEC-Enforcement-Leaders-Debate-BrokenWindows-Policy?mcode=1202615432600&curindex=1&back=NLJ&slreturn=20140914180607

Thanks scion.

[DeeDog]

They have stocks for smokable ebola now?
Joking, I haven't heard of this but I assume it's for ebola cure claims.

Seriously?

[waterchaser]

Seems MJ is taking a back seat in the pinky scam arena to
Ebola.. Ebola is becoming the scam dejour. So many scams, so little time

[Huggy Bear]

SEC Charges Eight for Roles in Widespread Pump-and-Dump Scheme Involving California-Based Microcap Company

FOR IMMEDIATE RELEASE
2014-202

SEC complaint
http://www.sec.gov/litigation/complaints/2014/comp-pr2014-202.pdf

Washington D.C., Sept. 18, 2014 — The Securities and Exchange Commission today charged a ring of eight individuals for their roles in an alleged pump-and-dump scheme involving a penny stock company based in California that has repeatedly changed its name and purported line of business over the past several years.


The SEC alleges that the scheme was orchestrated by Izak Zirk de Maison, who was named Izak Zirk Engelbrecht before taking the surname of his wife Angelique de Maison. Both de Maisons are charged by the SEC in the case along with others enlisted to buy, sell, or promote stock in the company now called Gepco Ltd. Zirk de Maison installed some of these associates as officers and directors of Gepco while he secretly ran the company behind the scenes. Collectively, they amassed large blocks of shares of Gepco common stock while the de Maisons manipulated the market to create the appearance of genuine investor demand, allowing an associate to sell his stock at inflated prices to make hundreds of thousands of dollars in illicit profits.


In a parallel action, the U.S. Attorney’s Office for the Northern District of Ohio and the Cleveland Division of the Federal Bureau of Investigation today announced criminal charges against Zirk de Maison.


The SEC has obtained an emergency court order to freeze the assets of the de Maisons and others who profited illegally through the alleged scheme.


“Microcap fraud is a scourge on our markets, and we are aggressively pursuing scurrilous penny stock schemers who make their living by preying upon innocent investors,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office.


According to the SEC’s complaint filed in U.S. District Court for the Southern District of New York, Zirk de Maison has secretly controlled the shell company now known as Gepco since its incorporation in 2008 under a different name. During the next five years, he caused the company to enter into a number of reverse mergers and its reported business evolved from equipment leasing to prepaid stored value cards related to electronic devices until the company eventually became known as WikiFamilies and claimed to own and operate a social media website. The company name changed to Gepco in 2013, and after a failed attempt to merge it into a private mixed martial arts company, de Maison created his own private company purportedly in the high-end diamond business and merged Gepco into it.


“Zirk de Maison concocted an array of reverse mergers and company name changes on his way to gaining control of the vast majority of Gepco stock in order to conduct a multi-faceted manipulation scheme,” said Amelia A. Cottrell, an Associate Director in the SEC’s New York Regional Office. “To help avoid the pitfalls of microcap fraud, it’s important to check the histories of companies and determine their legitimacy before deciding whether to invest in them.”


The SEC alleges that the de Maisons, who reside in Redlands, Calif., brought at least six others into the fold to coordinate various components of the scheme. They each are charged in the SEC’s complaint:

* Jason Cope of Gates Mills, Ohio, is a longtime associate of Zirk de Maison and has a past record of securities fraud with a court judgment against him in a previous SEC enforcement action. On Cope’s behalf, Louis Mastromatteo of Bay Village, Ohio, allegedly dumped more than 2.5 million shares of Gepco stock through a nominee into the public market for hundreds of thousands of dollars in illicit profits that were kicked back to Cope.
* Trish Malone, who lives in Santee, Calif., serves as Gepco’s president, CFO, and secretary. She allegedly used Gepco to issue stock to Zirk de Maison and others so that they could conduct two unregistered and illegal distributions of the securities.
* Peter Voutsas, who lives in Santa Monica, Calif., and owns a jewelry store in Beverly Hills, serves as Gepco’s CEO and chief investment officer even though Zirk de Maison runs the company behind the scenes. Along with * Angelique de Maison, Voutsas allegedly made a materially misleading statement about Gepco to the public while the de Maisons manipulated the market for Gepco’s stock.
* Ronald Loshin of San Anselmo, Calif., served as Gepco’s chief creative officer and allegedly failed to make required regulatory filings to report his transactions in Gepco stock as an insider. Furthermore, Loshin enabled de Maison to deceptively hide his own trading by allowing him to use a brokerage account held in Loshin’s name.
* Kieran Kuhn of Port Washington, N.Y., allegedly promoted Gepco stock through his firm Small Cap Resource Corp. and inflated the stock value to help the scheme succeed. He then conducted one of the unregistered and illegal distributions of Gepco-related securities for Zirk de Maison’s benefit.


According to the SEC’s complaint, Zirk de Maison exchanged e-mails and text messages with many of his co-conspirators as they openly discussed coordinating their promotional activities and manipulative trading in Gepco’s stock in order to create a false impression of market activity. They stood to earn exponentially more illicit profits given that they continue to beneficially own tens of millions of shares of Gepco stock, so the SEC today suspended trading in Gepco securities in order to prevent any further manipulation or dumping of the stock.


The SEC’s complaint, which additionally charges several companies connected to the scheme, alleges violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 9 and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The complaint seeks a permanent injunction and disgorgement of ill-gotten gains along with prejudgment interest, financial penalties, and penny stock bars. The SEC also seeks officer-and-director bars against the de Maisons and Malone.


The SEC’s investigation, which is continuing, has been conducted by John O. Enright, James E. Burt IV, Thomas Feretic, and Leslie Kazon. The case was supervised by Amelia A. Cottrell, and the litigation will be led by Howard Fischer and Mr. Enright. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Northern District of Ohio, the Cleveland Division of the Federal Bureau of Investigation, and the Financial Industry Regulatory Authority.

###

http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542985406#.VBsum_BX-uY

[tonyrksu]

if your giving them away give em to me!!! I followed you into a $32,000 loss.... not looking good my brother

[ZviTrader]

New Website: OTCScams.com

updates to follow. feel free to LIKE the Facebook page and Twitter :)

[cwell338]

I just think these clowns in there are so ridiculous and I hope Bob realizes which I'm sure he does , realizes who's working for him.

[Huggy Bear]

Mass illegal promotion is no laughing matter cwell.

[cwell338]

No problem. Just these shananigans of misleading investors so the same cats can cash in about every 3-4 months is ridiculous. HOLD HOLD HOLD. LMAO.