HERE PEOPLE READ THIS!
Ill let the cat out of the bag in this Chapter7 of the soon to be released book. It is still under edit but you get the point. I HOPE!
-
CHAPTER 7 – Why And When The Stock Price Drops
As always, when the stock tanks investors pop onto chat rooms and start cursing out to the CEO, as if they even read those posts as the reality starts to set it.
The stock chat room forums that were once the place for excitement and admiration for the company you invested in, soon becomes the place to vent your frustrations and anger but it’s pointless.
People who invest in a pumped OTC stock that say they intend to make $50,000,000 and don’t but you believe they said they would, end up filing complaints with the SEC.
The SEC reads those complaints and looks for proof only to find the pumped OTC said they INTEND not WILL make $50,000,000, when they say they INTEND to make $50,000,000 and never even make $1 the SEC says, “well they intended to but didn’t”, so no files will pass to the DOJ (FBI) for prosecution.
The SEC does not arrest people. When investors post the SEC will be arresting the CEO, they have no clue how this all works.
The SEC turns over evidence that is deemed illegal if they feel they have a case that justifies the involvement of the FBI. Since most Pumped OTC’s know how to word things to negate any illegal statements or activity, the SEC will not open a case for prosecution by the FBI.
You can’t charge people with a crime when no crime is committed. Investors think losing money is a crime just for the fact they want to blame someone other then themselves.
Those angry chat room posts that follow when a stock tanks go unanswered and are posted publicly because there is no way to contact the CEO or anyone else associated with the company. That’s if there is even anyone else running the company other than the CEO, which is almost always the case.
I have many times posted replies to those angry chat room posts and informed them the company said no such thing. Then they reply to me, yes they did and they will sue them.
Do pumped OTC investors actually think they can scare a CEO on some chat room threatening a lawsuit so that the CEO will all of a sudden be a nice person and say OK ill make the stock price rise so you can make a profit because of your threats of being sued?
The only way to even attempt to sue them is with a class action but lawyers know that you won’t win so they wont take the case and if you invested even $5000 into an OTC company that is now worth $100 and you sue them you will have to retain an attorney for $30,000 and you still wont win. And most OTC investors invest far less than $5000, maybe only $300 more or less, so even if you did win a lawsuit it would cost you $30,000 to recover $300.
This is why OTC pumped Companies won’t sell to one person $10,000,000 in stock but instead focus on small OTC dreamer gamblers who each invest $500 more or less. You would sue if you invested $10,000,000 but you won’t sue when you invest $500.
And it is much easier to get 20,000 people to part with $500 each then one person to part with $10,000,000.
If someone did invest $10 million into any Pumped OTC stock, then I want that persons phone number because I have a very large old bridge in Brooklyn for sale.
So posting you will sue the CEO and have charges brought up at the SEC and have them arrested is not going to happen even though you think you have right on your side you do not have the law on your side.
Unless the deceit is illegal like the Bernie Madoffs Ponzi scheme or Long Islands, Cosmo and others who went far beyond 100’s of millions and into Billions in fraud where the deceit was illegal and so big the NEWS could not even stay away is when the DOJ gets involved.
SO! The only benefit to posting on chat rooms, threatening the CEO about being sued and arrested is, you will only learn better typing skills.
You almost always see only one person listed on OTC pumped companies and no one else listed as members. If an OTC pumps and dumps $25,000,000 in shares, you can bet the CEO who is the patsy will maybe make $1,000,000 maybe $2,000,000 but because investors think the CEO’s are the ones who get all the money they verbally go after the CEO.
The CEO did not make mistakes with the pumped OTC Company, and was not a victim of the market issues everyone is eventually faced with when the stock drops in price.
What they did to get you, your family and friends and 1000’s more to part with their money was calculated and planned.
Investors cannot fault the CEO when they lose money, because losses are part of the plan. In order for the CEO and only a few others to make lots of money, lots of people have to lose money. Both sides never win and the pumped OTC never loses.
The anger investors post on line is not because they lost $100, it is because they told friends and family to invest as if they were some genius investment Guru that want to be right so badly, they forget or are in denial of the gravity of the situations reality.
Investors are really just angry with themselves because they are seen as the liar who told family and friends to invest who also lost their money. It’s hard to attend a BBQ with those people you told is a sure thing and not feel like an outcast so you end up avoiding them.
A short-term excuse is, not to worry, the stock will rebound but it never does.
Many investors actually believe posting on chat rooms, threatening the CEO will make their miserable family life all better by requesting the CEO refund everyone.
The CEO is to busy driving in his Ferrari to the dock to board his new 60’ sport fishing boat and could care less about the situation that only investors created by using emotions when they buy OTC pumped stocks.
Who wants to work hard at a business 24/7 losing millions knowing the plan that was pumped to investors will not work. They just take those millions and enjoy the easy life and not work.
This happens all the time with OTC pump and dump stocks. They say they may possibly do $50,000,000 in sales and will file to go to NASDAQ. Neither of which happens
Some pumped OTC’s will use some of the funds made selling shares and reinvest into another company and that other company places an order with the Pumped OTC and the OTC can say they are getting massive orders. But it was still investors money re-routed back to the OTC as a paid order. This helps draw people in believing that the pumped OTC is on the way to $50 million in sales.
Some Pumped OTC’s will actually work with another ally that is also a business and that other business places a $10,000,000 order for products from the pumped OTC. The OTC posts they got a $10,000,000 purchase order and sell even more shares. The problem is, the order gets cancelled a few months later by the pumped OTC and they won’t make that info public.
Eventually the $10,000,000 will not show up on the quarterly financials so the OTC has 3 months to dump more shares on a huge $10,000,000 purchase order that will never be filled.
The purchase order is real and so is the order being cancelled.
Investors posting the SEC will throw them in jail or arrest them etc.
I said it once and ill say it again, that is 100% incorrect.
Even if an OTC says they did in fact make $50,000,000 and lied and never made $1, The SEC will likely tell the company that they will be found non compliant for stating a fact that they did make $50 million and issue a fine of let say $2,000,000.
Paying the fine avoids a criminal enforcement action that gets the FBI involved with the possibility of the CEO and others going to jail.
Who would not pay a $2 million fine out of $60 million raised selling worthless stock to walk away scot-free who are also allowed to keep the $58,000,000 as well? And not have a criminal record to boot.
If it’s so easy for an OTC company not to lie and just say they intended to do $50 million, why say they did in fact make $50 million? Its risky but some pumped OTC’s take that risk. Remember if the hammer falls it’s only the patsy CEO who takes the heat, not the pumpers or those who are behind the scenes that make most of the money. So why lie?
Because Investors believe the company saying they did in fact make $50 million they must have or be sent to prison. This gives a reason for more investors to invest $1000’s not just $100’s. Investors believe if news is stated a fact that it must be, giving more reason to invest.
Investors are not aware of the fine and no criminal charges aspect of all this. Lying and saying you did make $50 million gives more confidence to Investors and the pumped OTC can raise much more money knowing a fine is inevitable. But they also know that making $60,000,000 more for a total of $120,000,000 is worth it knowing they will just be made to pay a fine.
One issue that is part of the fine and punishment is, the CEO is not allowed to be a CEO or board member of any public company for at least 5 years. The pumpers and debt converting behind the scene big money makers are not listed as part of the company so they are not include in the 5 year ban. Only the CEO is so they just find another person to be the CEO so they don’t have to wait 5 years to do it all over again.
A CEO can be as easy as a homeless man on the street and given a nice new suit. Instant CEO!
In many cases the CEO will be the one who does come back and just takes 5 years off to enjoy some of the investors millions and just take it easy, relax on exotic beaches buying exotic cars and beautiful homes with all that free cash.
It is better to swap CEO’s because the same named CEO on the new pumped stock may cause investors to find out or better yet just post a fake name on the OTC CEO data.
That is why so many OTC Companies security data shows previous company names and tickers that are almost always, you guessed it, 5 or more years apart.
When OTC Companies fold after the pump, the amount of companies trading on the OTC remains about the same, because so many are recycled they never all fold, they just keep reemerging under a new company name and ticker and the cycle continues over and over.
