In a cliff note version of what these guys do is, they go out and try to promote giving out 2 small loans to these smaller OTC companies and the totals usually up to around $100,000, they request a 10% interest paid on the loan. Then the loan is allowed to be converted into stock from the lowest stock price for a certain trading period time frame. So they naked short these companies to gain a huge amount of shares in the company or they put these companies out of business and naked it short to zero and then collect around lets say 10 to 15 million tax free. why is it tax free you ask? When a naked short, short sells a stock only the SELL is shown, not the buy. So the SEC does not see the buy they only see the sell.
Curt Kramer who partners with Charlie mayo had to pay 1.4 million to the SEC for this same exact scenario when they got caught. This happened in 2013. The old company they used to use is Mazuma Corporation, another company they worked in conjunction with was Asher Enterprises. What they do is use a new company name about every 2 years to play it discrete nd hidden from the SEC.
Here is a law blog review where the SEC denied a reverse split to benefit Mazuma Holding corp/Asher Enterprises and was denied by the SEC because they broke they broke Section 5 of the securities Act of 1933.
Here is the SEC owner acquisition Asher Enterprises did with a bunch of OTC stock companies. Now it you start to research a lot of these companies they were shorted to death and killed the company:
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