Thursday, October 30, 2014 7:20:54 AM
http://www.usatoday.com/story/money/markets/2013/06/03/sec-shell-company-stock/2384451/:
SEC raging war against empty shell companies
"Trading in 61 stocks described as "empty shells" was shut down Monday, as part of regulators' aggressive plan to sweep away dormant stocks often targeted by fraudsters.
Shutting down trading in thinly traded stocks has been a priority of the SEC for years. These stocks, which have next to no market value, can be easily bought by pump-and-dump operators who use them as a platform to lure in investors with false information.
This latest sweep is the largest since last year's "Operation Shell Expel" move by the SEC, which it removed a record 379 companies from trading in one trading day.
The move by the SEC is part of a trend at the regulator to use computers and data mining to help identify areas that are ripe for market manipulation before the fraud actually occurs, potentially saving investors from being separated from their money.
Shell companies are often bought by stock scammers for very little money. The names of the shell companies can then be changed into something that reflects a current hot theme with individual investors. The scammers can then buy up the stock for next to nothing, spread misleading and false press releases and then sell at higher stock prices.
While the action Monday was the biggest of the year so far, the SEC has been routinely been shutting down trading in shells all year.
"Stock manipulators crave empty shell companies that they can use to conduct pump-and-dump schemes and line their pockets with illicit trading profits by taking advantage of unsuspecting investors," says Andrew J. Ceresney, Co-Director of the SEC's Division of Enforcement in a statement. "We will aggressively suspend trading in such empty shells to take away a tool of their trade and help rid our markets of fraud."
AND HILLARD HERZOG IS STILL NO IN JAIL ! What a poor system of justice.
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