Even completely fictitious companies whose owners have been charged with fraud still trade occasionally. That doesn't indicate a damn thing about the stocks!
Sometimes it’s merely stuck shareholders like you who are buying their own shares to make it appear like something is happening so that unwary investors get tricked into buying their worthless shares so they can make a few bucks at others’ expense.
The owner of 4 fraudulent OTC companies was finally charged in January, along with his lawyer, 2 CEOs and the brokerage who placed the trades. And yet, those scams are still trading!
Even though the SEC said the owner "conducted no legitimate business through MedGen, but used it to further his fraudulent securities scheme and thereby enrich himself and others involved in that scheme."
Accordingly, it is hereby ORDERED pursuant to Section 17A(c)(4)(C) of the Exchange Act that Respondent Barton be, and hereby is barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization.
The SEC froze the crooks' assets last week, but even now those scams are still active!
But if you still want to believe that someone is acquiring shares before announcing news, then by all means - go right on ahead and load up! What have you got to lose but MORE money?
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