The scam is executed with the following steps:
• Visionary develops an astonishing breakthrough.
• Company announces this amazing breakthrough without any validation, to promote the company (the company has already issued several statements and releases on this technology).
• Visionary surrounds himself with key names,.
• Makes sure that all management in the company are “in” through issuing stock (all upper management, the BOD and audit committee members have received stock or options, or associated companies).
• File patents with major patent firms (which may or may not be issued).
• Throughout the process, insiders sell off millions of shares pocketing a fortune.
• Investors spend millions on a triumph of “hope over reality”. The company eventually folds leaving investors holding the bag.
