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Any professional would certainly know, which is a massive red flag that this company is not legitimate.
At best.
Note that the SEC issued them multiple comments on their Reg A offering documents and told them many times that they need to comply with US mineral reporting standards.
The claim they can use NI 43-101 is BS.
Just because it is a Reg A doesn't give them permission to ignore US regulations and laws. Even though it is a streamlined path to issuance, they still have to comply with US securities regulations including mineral reporting standards.
Yes, there is. They are not allowed to have it there, as they are not a Canadian reporting issuer. They are prohibited from including it both by the SEC and the Canadian regulators, as they cannot comply with NI 43-101 under Canadian law.
Which makes their claim both illegal and fraudulent as no document they prepare can EVER be NI 43-101 compliant.
Which is probably part of the reason why they don't know how to spell it.
Here is the thing. Only Canadian reporting issuers are permitted to use NI 43-101, as an important component of the law is filing the document on SEDAR for review by Canadian regulators.
If the Company is not a reporting issuer in Canada, and does not file on SEDAR, it cannot comply with NI 43-101..
Period.
And calling something "NI 43-101" without that component does not make it so.
The Dorsey article you posted applies to compliant Canadian issuers who ALSO register and report to the SEC and is not at all applicable to this situation.
Which this company does not.
Being able to Google something doesn't make it true.
It was in a registration statement.
I suggest you look before you leap.
Is BMXI a scam? Yes, it might be. But even if it is not, I find it highly questionable.
They claim to be producing gold, but their financials are unaudited, and their operations are purportedly in Indonesia, a country notorious for mining scams. They also don't seem to know squat about mining. For instance, they are a US company incorporated in Nevada. And yet, their meager SEC disclosure under REG A variously refer to NI 43-101, a Canadian standard which they are legally prohibited from using. They also can't spell it right. In one filing, they variously refer to it as 43/101, NI43-101, N43-101, and NI 43-101. Any actual mining professional would catch those mistakes right away and not make them. Massive red flag right there.
I also have to say their unaudited financials do not look right. They look scammy and fabricated.
The claim that most OTC mining stocks are scams is absolutely correct. There are some that aren't, but they are typically SEC registrants and have audited financials, and BMXI is neither. Of that group, almost 100% are unquestionably pump and dumps or outright scams. BMXI certainly fits the bill.
One more time. The SEC does not comment on any investigations.
Not that it really matters. COWI is insolvent and defunct. What the SEC WILL do is revoke the stock for failure to file. Guaranteed.
It is not a question of if, but WHEN. Most of the foolish "investors" in this stock that gave their money to Lloyd and his toxic lender cronies have already lost 99.9% of their "investment", but it won't be long before the SEC's revocation takes away their remaining 0.1%.
But that is what people who don't bother to do any DD and instead listen to idiot amateurs pumping stocks on message boards and social media get for being so stupid.
Short seller Scorpion Capital accuses Japan’s most actively traded company of being the ‘largest outright fraud in the world’
Short seller Scorpion Capital is taking aim at one of the biggest-trading stocks in the world. The $23 billion Japanese semiconductor equipment manufacturer Lasertec has ridden the AI wave, with more than a 25% bump to its share price since last fall—but Scorpion is accusing the company of being a “ticking time bomb” and “colossal fraud” that’s been faking its financials.
Lasertec is one of dozens of companies that have seen their valuations skyrocket due to demand from AI developers, who have piled into manufacturers behind the global supply chain providing the advanced semiconductors and massive quantities of energy needed to power AI models.
Lasertec’s signature product is its ACTIS EUV inspection machine, used to detect manufacturing flaws in cutting-edge semiconductors—but Scorpion is claiming that the technology, along with Lasertec’s financials, are a sham.
“The ACTIS system is defective with a fatally flawed EUV light source and other insurmountable problems, which it has concealed from investors,” Scorpion’s report reads. “The “new” ACTIS A300, recently announced as its next-generation EUV product and driver of growth, is a hoax.”
Lasertec’s massive stock run-up has made it a rising star on the Tokyo Stock Exchange: The company’s shares traded for pennies as recently as 2018, before a six-year tear that saw its share price increase more than 2,000% as investors chased returns associated with its role in the ultra-hot semiconductor manufacturing industry.
EUV inspection machines are a must-have for large-scale manufacturers including TSMC, Intel, and Samsung, which depend on the complex and extremely expensive devices for quality control. Lasertec’s main competitor in the EUV space is Dutch firm ASML, which has a near-monopoly on the equipment needed to etch chip designs onto wafers and charges $380 million apiece for its top-of-the-line machines. Lasertec has been producing EUV quality control machines since 2017.
Scorpion investigators visited Lasertec’s production facilities and reported that the actual state of the site is far from what Lasertec has advertised. The firm, founded by former Carl Icahn acolyte Kir Kahlon, wrote that the company’s new Yokohama “innovation park” is actually “a generally deserted facility with no R&D or production activity.” Scorpion also cited interviews with leaders of Lasertec’s main customers, who Scorpion claims are “exasperated and furious to the point that TSMC has ceased buying [Lasertec’s] EUV machines.”
Scorpion also pointed to Lasertec’s accounting practices. The short seller alleges the company has routinely overstated revenue and earnings to investors, as well as manipulated its inventory numbers.
Lasertec’s stock dropped 5% after Scorpion’s report was released. The company issued a brief letter stating that it “clearly [denies] the allegation of improper accounting practices” after market close on Wednesday, without elaborating on the alleged flaws in its EUV machines.
Severe disruptions to Lasertec’s business could send ripples across the semiconductor sector more broadly, but would likely not have severe impacts. Lasertec competitor KLAC Corp. sells its own EUV inspection machines, which would be a roughly like-for-like swap for major chipmakers. But any significant knock to Lasertec’s share price would likely hurt the Tokyo Stock Exchange, which has largely depended on semiconductor stocks including Lasertec to fuel big gains over the past year.
Lasertec could not be immediately reached for comment.
https://fortune.com/2024/06/05/short-seller-scorpion-capital-lasertec-japan-semiconductors-chips-euv-fraud-allegations/
Too bad I have been right all along about COWI and everyone foolish enough to disregard the facts and buy this worthless pump and dump POS is out their "investment".
COWI is now delinquent in 2 filing cycles. Besides the BS Lloyd is pushing on Twitter/X for free (which is all they can afford), it is very unlikely that anyone will hear anything from COWI again.
Hilarious. Pretty much all the shareholders have become "bashers" as they are fed up with Lloyd. Too bad they didn't do any DD BEFORE they bought the stock and learned Lloyd's Modus Operandi, which is to take the shareholder's money and leave them with nothing.
COWI never had any chance of success, as it was a pump and dump from Day 1.
COWI hasn't actually done anything. They are an insolvent fraudulent pump and dump, and I see that shareholders are finally seeing it for what it is.
This is the 4th pump and dump that Lloyd has run on this ticker. And now that the company is long delinquent and soon to be revoked by the SEC, it is probably going to be the last. Good riddance. And hopefully everyone that gave their money to scamming Lloyd and the toxic death spiral lenders will learn something from their mistake and NEVER buy shares of a toxic issuer again.
Learn from your mistakes.
Perhaps the greatest name for a subject in an SEC case in history.
Penny Flippen.
Yes, that is the woman's name.
https://www.sec.gov/files/litigation/admin/2024/ia-6620.pdf
SEC to Close Salt Lake Regional Office
https://www.sec.gov/news/press-release/2024-67
Wasn't that long ago that the SLC office was among, if not the top, regional office in bringing fraud charges. That staff was almost all investigations, especially since they moved all of the office's Exam functions to Denver. The reason they give for the closure of what is now their smallest regional office is recent "significant attrition".
Utah always has been, and certainly remains, a hotbed of securities fraud. This closure will only embolden the criminals.
No, they didn't. But I agree with many, including many within the SEC and FINRA, that the 2 week short selling reports need to move to a shorter time period, if not daily. That will be easier to do with the new shorter settlement time.
The Apes think that new information will prove naked short selling as they think the long time between reporting periods allows brokers to hide it. Instead, it will disprove it, exactly as the SEC's report indicates. The greater transparency may serve to convince some people the Apes are wrong.
I don't think he realizes much about this stuff - just like the APES! But he is certainly not the only politician that has no clue about business and finance in general, and stock trading and investing in particular.
The hilarious part is that the Apes demand for greater transparency is likely to backfire on them. It will further demonstrate their thesis of naked short selling is wrong rather than proving they are right.
"Be careful what you wish for!"
I stay out of politics and political discourse, but.....
Yeah. Exactly what you said.
Greater transparency? Fine, as long as it isn't unduly onerous in terms of effort for reporting. All for it.
Stronger regulatory oversight? Nice phrase, but the Apes don't understand what it means and what it requires. They are clueless.
Tougher penalties? I think my position on that is well known. White-collar crime is grossly underpenalized in the United States. But again, the Apes have no clue of what is really going on and they see crime and wrongdoing where none exists, while ignoring clear and obvious criminal activity right in front of them, with much of it directed at the APES to defraud the Apes of their money.
Go figure.
Even NI 43-101 isn't perfect, even though many investors act as if it is. Any law or regulation can be circumvented by a determined individual or group, if they are determined enough. This one is a head-scratcher, though. Having one person solely in charge of receiving assay results and supplying them for entry into the property database is a clear issue, and an obvious source of potential fraud. This is a failure on the part of the company and their internal controls.
Red Pine plans new resource, downplays alleged assay fraud at Ontario gold project
https://www.mining.com/red-pine-plans-new-resource-downplays-alleged-assay-fraud-at-ontario-gold-project/
Red Pine Exploration (TSXV: RPX) says its ex-CEO did more reputational damage than harm to the company’s Wawa gold project in northern Ontario when he allegedly altered hundreds of drill core assays used in a resource estimate.
Quentin Yarie, the CEO from July 2015 before stepping down on Feb. 21 this year in an unrelated move, according to the company, oversaw a data collection process where he was the sole recipient of emailed assay results from Activation Labs. Red Pine alleges Yarie changed 532 assays out of 98,000 before forwarding them to staff for use in project modelling its 2019 resource update and marketing.
SIGN UP FOR THE PRECIOUS METALS DIGEST
“Look, in the end, it could have been a lot worse in terms of timing and the impact,” incoming CEO Michael Michaud said on a conference call on Wednesday. “We still believe in the potential of the asset. This is the reason why I joined Red Pine, this is reason why I’m here today and am looking forward to becoming the CEO.”
The scandal for the junior, which lost 60% of its share price when assay discrepancies were first revealed on May 1, may bring to mind the Bre-X Minerals fraud of the 1990s, but is on a much lower scale. Red Pine estimates the doctored assays aimed to marginally increase grade and could lower its Wawa project resource by as much as 12%. Bre-X involved blatant salting of core samples with incompatible gold nuggets.
“Certainly, though there was some manipulation of the assets, they were mostly embellishments,” Michaud said. “I’m not really terribly upset about the 10 or 15% because we’ll get that back easy.”
New resource
Red Pine suspended planned drilling and said it would trim costs at the site as it prepares to issue a new resource update with completely verified assays from as much as 70,000 metres in drilling since the last update. It didn’t give a potential completion date.
Shares in Red Pine rose about 20% to C$0.11 apiece on Wednesday morning in Toronto, valuing the company at C$21 million. They plunged to C$0.08 apiece from C$0.21 on May 1 when the company first described the assay inconsistencies in a release. They had traded in a range of C$0.16 to C$0.24 this year until May.
Red Pine referred the alleged fraud to the Ontario Securities Commission. It didn’t mention any legal action of its own against Yarie. He hasn’t replied to a request last week for comment from The Northern Miner.
The project lies beside the town of Wawa near the northeast shore of Lake Superior, about 220 km north of Sault Ste. Marie. The site hosts several historical mines that produced about 120,000 oz. gold.
Red Pine acquired the project in 2014. It produced a resource for the Surluga deposit in 2015 and later merged it with one on a historical mine area, Minto, in 2018.
New CEO
The company on April 22 announced the appointment of Michaud as CEO. He is to take office around July 19. The leadership change had nothing to do with the alleged assay manipulation, chairman and interim CEO Paul Martin (not the former Prime Minister) repeated on Wednesday.
“In all cases, the manipulation that occurred was to increase the grade,” Martin said on the call. “However, in virtually all cases, the manipulated grades were defendable at the time, based on among other things, the visual inspection of the core and assessment of the mineralogy, and one reason why the selective manipulations were not easily brought to light at the time.
“The changes were supported by the nuggety effect of the property as represented in the overwhelming number of unmanipulated assay results, often near where the selective manipulations were done.”
Red Pine staff first noticed a discrepancy between a certified assay result received from Actlabs and the corresponding assay result in the company’s database on April 29. An investigation determined the assay altering was done from the spring of 2015 until Jan. 30 this year.
Investigation
The company divided its investigations into two periods of assay results: 2014-2019 that resulted in the mineral resource estimates set out in the NI 43-101 technical report dated June 21, 2023 with an effective resource date of May 31, 2019.
The independent geologist in charge of the resource update, known in mining regulations as the qualified person, was Brian Thomas of Sudbury-based Golder Associates, now part of Montreal-headquartered WSP. Thomas declined to comment when reached this week by our sister publication, The Northern Miner. He referred questions to his WSP manager, Anas Tuijar, who didn’t return a phone message.
A second period covered 2019 to the present, during which assay results were disclosed through news releases.
For the first period, Red Pine determined that the inconsistencies mean a reduction in inferred resources for Wawa’s Surlaga and Minto deposits.
It estimated the Surluga area will lose an estimated 39,500 to 54,000 oz. (between 205,000 and 240,000 tonnes grading, on average, 6 to 7 grams gold per tonne) from inferred resources. That compares with the previous estimate of 2.4 million tonnes grading 5.22 grams gold per tonne. The indicated resource of 1.2 million tonnes grading 5.31 grams gold is not expected to change.
The Minto deposit loses 8,000 to 12,000 indicated oz. (between 30,000 and 40,000 tonnes grading 8.5 to 9.5 grams gold), and 16,000 to 20,000 inferred ounces (75,000 to 85,000 tonnes grading 6.5 to 7.5 grams gold). It was previously reported to hold 105,000 indicated tonnes grading 7.5 grams gold per tonne and 354,000 inferred tonnes grading 6.6 grams gold.
PCAOB Sanctions MaloneBailey, LLP, imposes a $400,000 Fine for Pervasive Quality Control Violations
The PCAOB also requires the firm to engage an independent consultant and conduct training for all audit staff
Washington, DC, May 21, 2024
The Public Company Accounting Oversight Board (PCAOB) today announced a settled disciplinary order sanctioning MaloneBailey, LLP (“the firm”) for violations of PCAOB rules and quality control standards.
From 2018 to 2021, PCAOB inspection staff conducted three inspections of the firm. During each of these inspections, the PCAOB notified the firm of significant audit deficiencies that raised concerns about the firm’s engagement performance. Despite the firm’s awareness of these deficiencies and concerns, it failed to make effective changes to improve its system of quality control.
“Effective quality control systems are critical to high-quality audits, and the PCAOB will not tolerate failures to maintain those systems and properly protect investors,” said PCAOB Chair Erica Y. Williams.
Without admitting or denying the findings, the firm settled with the PCAOB and consented to a disciplinary order that:
Censures the firm;
Imposes a $400,000 civil money penalty on the firm;
Requires the firm to engage an independent consultant who will review and make recommendations concerning the firm’s quality control policies and procedures; and
Requires the firm to conduct certain training for all audit staff.
“Today’s order should serve as a stark reminder that firms must have effective systems of quality control,” said Robert E. Rice, Director of the PCAOB’s Division of Enforcement and Investigations. “If they do not, we will hold them accountable for those failures, particularly when the failures have been repeatedly identified during inspections of the firm.”
Mexican justice is slow, but it is still faster than Canada.
Seriously.
Cam Funkhouser weighs in on the Meme stocks and the question of the need for new regulations.
New regulations aren't needed for meme stocks: former U.S. FINRA vice president
The existing regulatory framework allows the regulators to prosecute anyone who interferes with the integrity of the market, says Cameron Funkhouser, former executive vice president of the U.S. FINRA.
https://www.bnnbloomberg.ca/video/new-regulations-aren-t-needed-for-meme-stocks-former-u-s-finra-vice-president~2923045
NASDAQ has the legal authority to halt stocks in that way. "Back in the day" they used to do so, but as the market volumes increased along with volatility, they have taken an almost total hands off approach to market regulation.
Methinks the NASDAQ members make far too much money off of that trading to stop their gravy train.
The preferred doesn't surprise me. That is standard operating procedure for certain (i.e., scammy) Nevada Corporations. Having supervoting preferred allows the insiders to retain full control no matter how many shares the corporation issues. Even when floorless toxic convertibles are concerned.
A lot of penny players who know nothing of corporate law, and Nevada specifically, get blindsided by the consent provision and the supervoting preferred. By the time they figure it out they have often lost most of their "investment".
But, not all Nevada corporations have supervoting preferred. Only the sleazy ones..... Some actually give some consideration to shareholders, and those should not be tainted with that broad brush. Investors need to do their DD research and figure that out BEFORE they buy.
Most likely not.
Nevada law (NRS 78.315) allows companies to forgo annual meetings of shareholders if more than 50% of the voting shares provides consent. It doesn't matter if the BOD owns those shares or not. Just as long as the person or persons who do consent in writing to such an action.
Considering COWI's current market cap is just $21,986 total, $687 in dollar volume in one day is 3% of the market cap! A lot of stocks would be pleased with 3% turnover in a day!
Actually, they do teach that in B school. P.T. Barnum is a very prominent figure in American business, and his practices are widely discussed and debated within business education curriculum.
Kitty seems to personify P.T.'s worst skills. I wonder how much he front-loaded?
You should stop believing anything a toxic lender says. He is full of crap, and his claim of the vote for dealers has anything to do with his case is 100% wrong. The new vote was held in February 2024, which is years after the SEC starting going after, and beating, the toxic lenders. The new rule also does not change the rule that Kramer is complaining about, so the SEC's position regarding toxic lenders is unaffected. It instead is being applied to OTHER types of traders, and really has no relationship to his case at all.
Instead, it is just more intentional obfuscation by Kramer to try to drum up support for himself by fooling the stupid and ignorant, and those that hate the SEC by nature and think everything they and the government does is oppressive and wrong.
Yeah, it is just CYA PR. I am sure his clients are not at all happy with him right about now, as his "investments" is the only "financing" they can get. So, with him out of the picture, they are all gonna die a lot quicker than they expected. Those officers and directors of his clients are going to have to pare their caviar bills.
It is especially ridiculous that the PR was put out by a law firm that should know better than anyone that the SEC NEVER APPROVES ANYTHING. Complete BS, and shame on them for claiming otherwise.
And throwing in the two SEC attorneys that resigned due to a crypto case is really a reach. Especially since they ignore the long line of SEC's home runs on the dealer issue.
Curt Kramer's defense to the SEC charges is damn lame. And won't get him anywhere.
He says he is innocent because he has been issuing toxic paper for over a decade and the SEC never charged him before now, so that somehow equates to approval and legality.
Uh huh.
No mention, of course, that the SEC is currently batting 1.000 in all their cases against other toxic dealers under the exact same violations. And that isn't just the ones who have settled the cases. The ones that have fought the charges in court have all lost, as the Courts have sided entirely with the SEC. I doubt this will end any differently.
https://www.prnewswire.com/news-releases/naidich-wurman-llp-responds-to-sec-complaint-on-behalf-of-power-up-lending-group-ltd-geneva-roth-remark-holdings-inc-1800-diagonal-lending-llc-and-curt-kramer-302138775.html
Yeah, not unusual on a Friday afternoon.
I suggest you learn how stock trading works.
Market Makers typically leave their bids and offers displayed overnight on a weekday. However, on a Friday, Market Makers typically withdraw their quotes and start over on Monday. Market Makers also like to leave the office early on Fridays, so most of the quotes disappear before the last record of the afternoon. Which means all the active traders are gone, gone GONE early on Friday, leaving only those MM's quotes that are far, far FAR away from the market to display in the final post-close quote grab by the quotation services, which is what you are seeing.
It is meaningless, and has absolutely no bearing on the actual market or what will happen on Monday when the active MM's return to the office and resubmit their actual quotes.
If people are going to trade OTC stocks they should at least learn the basics of how the market works.
Sure stinks of a SLAPP suit to me.
Perhaps one or more of the targeted individuals lives in an anti-SLAPP state? That would be fun.
SEC Charges Rhode Island Stock Promoter with Microcap Fraud
The companies in question are SOLY, CNSP, EBET, VLCN, TOBAF
https://www.sec.gov/litigation/litreleases/lr-25993
The Securities and Exchange Commission today announced charges against Cranston, Rhode Island resident Ahmed Alomari and MCM Consulting, the entity Alomari controls, for fraud and other securities law violations related to their promotion of the stocks of at least five microcap issuers.
The SEC alleges that from at least March 2019 and continuing to February 2022, Alomari used such outlets as Twitter, Instagram, Facebook, investor chatrooms, and text blasts to promote these microcap stocks without disclosing the source or amount of compensation he received from, or on behalf of, the issuers for his promotion of their stocks. The SEC further alleges that Alomari personally invested in some of these issuers' securities, then surreptitiously sold the stocks while publicly recommending that investors buy them. This conduct included two initial public offerings in which Alomari allegedly invested and quickly sold all his shares for at least $1.4 million in profits. According to the SEC's complaint, Alomari also was able to publicly sell shares he had earned from his promotional services based on false representation letters confirming that the shares were available for public trading. The SEC alleges that Alomari directed his wife, whom he named as the sole officer of MCM Consulting, to sign the false representation letters.
The SEC's complaint, filed in the U.S. District Court for the District of Rhode Island, charges Alomari and MCM Consulting with violating the anti-fraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, the anti-touting provisions of Section 17(b) of the Securities Act, which prohibit promotion of a security without disclosure of compensation received for the promotional activity, and the registration provisions of Section 5(a) and (c) of the Securities Act. The SEC's complaint additionally charges Alomari with violating Section 20(b) of the Exchange Act by violating the anti-fraud provisions through or by means of his wife. The complaint seeks, as to both Alomari and MCM Consulting, permanent injunctions from violating the charged provisions of the federal securities laws, disgorgement, prejudgment interest, civil monetary penalties, and a penny stock bar. The complaint also seeks a bar against Alomari from acting as an officer or director of a public company.
The SEC's case is being handled by Richard Harper, Jeffrey Cook, Alexandra Lavin, Jonathan Menitove, Ryan Murphy, and Celia Moore of the SEC's Boston Regional Office.
That is nice and all, but let me let you in on a little secret that many people don't know.
There is a huge shortage of PCAOB registered auditors in the USA. Of the 350 registrants that Borgers audited, I am sure that most, if not all, chose him not because he was easy, crooked (as if anyone knew) or even cheap (he wasn't, BTW). He was one of the few auditors that took new clients and was available for engagement to meet the SEC requirements.
I am not at all sure that all of the 350 Borgers clients will be able to find a new auditor quickly, if at all. There just aren't that many available slots out there.
But hey, if you are a CPA with public company auditing experience, no better time to start your own firm - there are 350 registrants who are dying for your services.
Time for some real DD Support and Research.
Auditor BF Borgers was suspended and prohibited from practicing by the SEC today, effective immediately. They have over 300 SEC registered clients and over 20 broker/dealer clients. This is massive.
SEC Charges Audit Firm BF Borgers and Its Owner with Massive Fraud Affecting More Than 1,500 SEC Filings
https://www.sec.gov/news/press-release/2024-51
FOR IMMEDIATE RELEASE
2024-51
Washington D.C., May 3, 2024 —
The Securities and Exchange Commission today charged audit firm BF Borgers CPA PC and its owner, Benjamin F. Borgers (together, “Respondents”), with deliberate and systemic failures to comply with Public Company Accounting Oversight Board (PCAOB) standards in its audits and reviews incorporated in more than 1,500 SEC filings from January 2021 through June 2023. The SEC also charged the Respondents with falsely representing to their clients that the firm’s work would comply with PCAOB standards; fabricating audit documentation to make it appear that the firm’s work did comply with PCAOB standards; and falsely stating in audit reports included in more than 500 public company SEC filings that the firm’s audits complied with PCAOB standards.
To settle the SEC’s charges, BF Borgers agreed to pay a $12 million civil penalty, and Benjamin Borgers agreed to pay a $2 million civil penalty. Both Respondents also agreed to permanent suspensions from appearing and practicing before the Commission as accountants, effective immediately.
“Ben Borgers and his audit firm, BF Borgers, were responsible for one of the largest wholesale failures by gatekeepers in our financial markets,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “As a result of their fraudulent conduct, they not only put investors and markets at risk by causing public companies to incorporate noncompliant audits and reviews into more than 1,500 filings with the Commission, but also undermined trust and confidence in our markets. Because investors rely on the audited financial statements of public companies when making their investment decisions, the accountants and accounting firms that audit those statements play a critical role in our financial markets. Borgers and his firm completely abandoned that role, but thanks to the painstaking work of the SEC staff, Borgers and his sham audit mill have been permanently shut down.”
The SEC’s order finds that, among other things, the Respondents failed to adequately supervise and review the work of the team performing the audits and reviews; did not properly prepare and maintain audit documentation, known as “workpapers;” and failed to obtain engagement quality reviews, without which an audit firm may not issue an audit report. According to the SEC’s order, of 369 BF Borgers clients whose public filings from January 2021 through June 2023 incorporated BF Borgers’s audits and reviews, at least 75 percent of the filings incorporated BF Borgers’s audits and reviews that did not comply with PCAOB standards.
The SEC’s order further finds that, at Benjamin Borgers’s direction, BF Borgers staff copied workpapers from previous engagements for their clients, changing only the relevant dates, and then passed them off as workpapers for the current audit period. As a result, the order finds, BF Borgers’s workpapers falsely documented work that had not been performed. Among other things, the workpapers regularly documented purported planning meetings – required to discuss a client’s business and consider any potential risk areas – that never occurred and falsely represented that both Benjamin Borgers, as the partner in charge of the engagement, and an engagement quality reviewer had reviewed and approved the work.
The SEC’s order finds that the Respondents engaged in improper professional conduct and violated, and caused violations of, the antifraud, recordkeeping, and other provisions of the federal securities laws. Without admitting or denying the SEC’s findings as to each of them, BF Borgers and Benjamin Borgers both consented to an order, effective immediately, pursuant to which they are ordered to pay civil penalties and are denied the privilege of appearing or practicing before the Commission as an accountant, as discussed above. In addition, they are censured and must cease and desist from committing or causing violations of the relevant provisions of the federal securities laws.
The SEC’s investigation was conducted by Taryn Lewis, Jake Schmidt, and Ann Tushaus of the Chicago Regional Office, and was supervised by Brian Fagel.
Some research is conducted and DD performed. It is as Janice has said - since the changes to the OTC booted so many of the scams and dead stocks used in pump and dumps, there is less going on.
But there is still a lot out there. Perhaps someone will bring something to the Board for discussion?
Probably bailed out like every other shareholder with half a brain. Losing 99% of an investment is better than losing 100%.
One more time. COWI being a penny stock is immaterial. It being an insolvent toxic death spiral convertible issuer pump and dump is.
That is why I don't "bash" every single penny stock. Being a penny stock is not the issue here, or in those stocks, either.
Management and their cronies lying and stealing shareholder money, and claiming this worthless POS is a "good investment", IS.
Cue the conspiracy theories.....
Whistleblower Josh Dean of Boeing supplier Spirit Aerosystems dies of 'sudden illness'
https://www.newshub.co.nz/home/world/2024/05/whistleblower-josh-dean-of-boeing-supplier-spirit-aerosystems-dies-of-sudden-illness.html
This is a discussion board. Not a pump until you drop so I can dump my stock on the stupid idiots board. But that is exactly what you seem to believe, and want, it to be. You don't seem to understand what I-Hub is actually about and its purpose.
The amateurs who either don't do DD, or don't know how, should read my posts and learn something.
Same with those who don't know what a pump and dump is, as COWI is a textbook example.
How is the stock price, and your "investment" in this worthless POS doing?
If you don't like to hear the TRUTH about your garbage stocks, then don't buy garbage stocks.
How is the stock doing? And who has been right about it?
COWI is an insolvent pump and dump. It being a penny stock is irrelevant. The fact that it is a toxic death spiral convertible issuing scam is what is important here.
No one with any financial knowledge would buy COWI, or any other toxic convertible issuer. They know better, and all it takes is 60 seconds of actual DD to know that.
You mean you both buy crap stocks without any DD and throw your money away?
That I certainly agree on.