It works this way. Create a shell company, file a legitimate concept/idea/plan to the PTO in VA for a patent, and then go public and sell shares. Raise tons of money, go to a lot of tradeshows, demo product, talk about 1 patent and potential licensing with suitors and build phones.....
And wait.....wait some more, then make up a bunch of bogus PRs and reel-in all the fools buying in this boiler room stock to drive the price up....
So now the founders of this company has your money and many other investors $$$$$ and have decided to disappear.....
Company has no deals, burn through tons of cash, stock price dips to (.03 cents) and the pumpers are at it again reeling-in all new suckers just to drive the price up in order to cover their shares.
You get the idea now? Its great if you buy @ .03 and wait for it to climb to .12/.15 and sell.