New Shell Stocks (fka )

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The term "hijack" comes from the SEC. It was a term repeatedly used by the SEC during the shell expel program which was used to suspend over 568 dormant shells between 2012 - 2015. It is very much the proper term to be used when somebody comes and takes over control of a shell from its previous owners through the courts or otherwise.

https://www.sec.gov/news/press-release/2013-2013-97htm

The SEC suspended trading in the securities of 61 empty shell companies that are delinquent in their public filings and seemingly no longer in business based on an analysis by the SEC's Microcap Fraud Working Group. Since microcap companies are thinly-traded, once they become dormant they have great potential to be hijacked by fraudsters who falsely hype the stock to portray it as a thriving company and coerce investors into "pump-and-dump" schemes.

SEC uses the term "hijack" as does FINRA and dozens of respectable attorneys and individuals involved in the securities industry as way to describe individuals that take over control of dormant/abandoned shells.

I'm not saying that shell hijackers are necessarily breaking any laws though many of them do use misrepresentations and hide facts while going through the court process to gain custodianship of the shells, but the term "hijacking" is a common place term in the industry to describe the take over of a shell from its previous owners through the court system or otherwise. There are many cases where the previous owners have had to fight to maintain control of their shells and even some cases where the previous owners found out too late and couldn't do anything about it because the hijackers had already moved the shell to a new domicile and/or created new preferred control stock.

I will continue to use the term "hijack" to describe how shell hijackers like Joseph Arcaro and Thomas DeNunzio and others take over control of abandoned dormant shells because it was the term the SEC used when they were taking action to eliminate zombie tickers.

The SEC never should have discontinued the shell expel program. As soon as they stopped the program, shell hijackers like Adam Tracy, Joseph Arcaro, Rhonda Keaveney, Thomas DeNunzio, Frederick Bauman, David Lazar, Mark DeStefano, Robert Stevens, Robert Chen, Kelani M Long and others started to become very active again. And now we have a ton of new pump & dump scams that wouldn't exist if the SEC would have continued to suspend the dormant shells before they could get hijacked.

Once a shell has its corporate charter revoked they should no longer be allowed to trade period. Allowing old abused dormant shells to be hijacked so they can be used for new frauds is just stupid. There is no excuse for it. And that's all 99% of them get used for is new pump&dump/stock manipulation schemes.

The shells have no value anyways because they are shells. An Issuer that has been a shell cannot have new free trading stock created. The only way that can be changed is by filing a registration statement with the SEC for the new stock which almost none of them do. Yet over and over again the shell hijackers use the shells to create convertible debt which gets turned into unregistered free trading stock thanks to dirty attorneys willing to write attorney letters saying the Issuer was never a shell company. The hijackers and their dirty attorneys ignore securities regulations and the transfer agents just look the other way because all they care about it getting paid which doesn't happen when a shell is abandoned. In fact, it is often the transfer agents that are assisting the shell hijackers in locating the abandoned shells like what happened with William Alessi and Raymond Barton.

Yes, Arcaro tends to go after shells with lower share structures and is pretty good about just peddling the shells and not using them for debt/dilution scams, but it doesn't change the fact that he is hijacking the tickers. And once he sells those shells there is a great risk that they will end up being used for pump&dump activity and scams.