Rainbow International Corp. (RNBI)

[scion]

Suspension Seems Likely for RNBI as Pump & Dump Campaign Turns Desperate

http://www.pumpsanddumps.com/

June 24, 2014: As the Rainbow International (RNBI) Pump & Dump completes its sixth week, it would be fair to say the current breakdown of the share price, inevitable with all sideways campaigns, should have been expected. Relying solely on the gullibility of penny stock novices and the naive, the perpetrators of this fraud have successfully lined their pockets without benefit of a press release or substantive filing from the company. The only whispers coming from the company itself since the beginning of May were with respect to a change of control and the url of its website. However, one would have to be entirely clueless to be believe that the company was not complicit with the nefarious scheme to defraud that has been going on here. It has not returned our telephone calls or emails through which inquired about the tactics used to generate volume in the stock, nor has it refuted the activities we are about to outline to you here, and of which the company was clearly well aware. Furthermore, insiders held almost all of the stock when this scam was launched this past May 14th.


The RNBI Pump & Dump campaign is one of the most despicable and brazen attempts to defraud the public that we have ever come across in the penny markets.


A this time we'll refer you to Janice Shell's May 20th review of the company for a little background. Today, we'll look at the desperate tactics invoked to dump millions of worthless shares onto the street.


To say that the PennyStocks.com promotion of RNBI did not generate the kind of volume expected by the financiers of the scheme is understatement. The tout's emails to its followers became more desperate and towed the line of legality as the weeks went on. Then it went way past that line.


PennyStocks.com was a site originally owned by Toronto promoter, Peter Leeds. Leeds does not email to the masses at large, but rather keeps a list of subscribers who pay some pretty hefty fees to be on that list. He admits selling the domain to what were then anonymous parties, through lawyers, for a sizable price. We believe that he did not know that the domain would end up under the control of fugitive John Babikian and his associate scum at Awesome Penny Stocks.


The domain name obviously has value. With the demise of Awesome Penny Stocks, Babikian and company likely sold the domain to another equally scuzzy party. Whoever the current owner is, he allowed the privacy cloak to lapse. A "Who Is" check of the registration shows that Peter Leeds is still the registered owner of the domain. Leeds says that he doesn't control the domain nor does he contribute to its nefarious activities and we believe him. The move by Babikian et al. was actually genius because by not changing the registration, they created a layer of camouflage and some deniability. The failure to change the registration was masked by the privacy cloak and revealed until that was allowed to lapse. The current controllers of the domain are hiding behind Leed's name.


The financiers of the RNBI Pump & Dump campaign certainly anticipated more cachet from the PennyStocks.com endorsement. The seven figure trading volumes that were generated during most of the days in the second half of May, subsided as the calendar turned to June. When the expected results failed to materialize, we imagine the tout was pressured to do whatever necessary to earn his fee--reportedly GBP 250,000, equal to about USD 420,000. That is when the legal line was crossed.


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