Hangover Joe's Holding Corp. (fka HJOE)

[1manband]

Correct me if I'm wrong but the purpose of most scams is to sell shares correct

The operative term is "most". There are a lot of ways to run a stock scam and enrich insiders. Many scams, particularly those that are toxic death spiral issuers, find other ways to enrich insiders besides directly selling their shares. Many of these toxic death spiral issuers take the blood money raised by selling those securities guaranteed to ultimately kill the company and find ways to transfer them to the insiders. That would include salaries, bonuses, management fees, indirect payments, etc. And grants of discounted (or free) stock, both common and preferred.

And those are just the (mostly) legal ways. There are lots of illegal ways, too. But it is not difficult to figure out the ultimate end game when a Company issues toxic death spiral convertibles. The company dies - 1005 guaranteed - and most of the money generated by the sales of these company killers ends up in the insider's pockets. And common shareholders are left with nothing.