China Dongsheng International Inc (CDSG)

[Mr. Zen]

The key issue with these guys is they do not follow the rules and young public companies are vulnerable because they need money to survive until they bring in an income. I believe the rule is they can sell no more than 2% of the monthly float into the market, that keeps the share price from tanking and protects shareholders..
The other side of that is the sales pitch they use on companies to buy these shares, it leaves the company vulnerable because they need the money and do not have the resources to investigate the source. Until the SEC changes it's regulations and allows ordinary investors to partake in the 144 market it will remain the same.... big boys get control to screw the average investors

the Defendants avoided certain regulatory obligations for dealers that govern their conduct in the marketplace, including regulatory oversight, financial reporting requirements, and maintaining required books and records.

uneducated investors in penny stocks always blame the company because the do not understand the dynamics of the professional investment market.