Wash trading - i.e. the illegal practice of trading shares between accounts to give the appearance of liquidity.
The allegations, as outlined in the Federal (SEC) and State (Texas OAG) indictments of former GFET CEO, Darrel Uselton, and his uncle, Jack Uselton, they allege that there were numerous wash trades performed as a common practice by these individuals on the 35 companies referenced ("Operation Spamalot"). The trial procedures for these two individuals are ongoing with recent motions considered last month, and expected to move towards a docket sometime early next year, so at this point they deserve to be "presummed innocent", until proven otherwise.
However, disturbing to me are the numerous entities at GFET that were issued millions of shares:
Ibis Energy LLC Darrel Uselton 2,255,403
David Mordekhay David Mordekhay 1,585,000
Carly Long Carly Long 1,585,000
Oren Mizrahi Oren Mizrahi 1,585,000
Mark Schiller Mark Schiller 500,000
Firemark Capital, LLC Jack Uselton 150,000
Cloud Management JT Cloud 4,000,000
Oxford Funding JT Cloud 2,000,000
National Health Alliance, Inc. JT Cloud 2,000,000
Galleria Securities Corp. JT Cloud 2,000,000
The Internet Business Factory Jonathan Gilchrist 6,000,000
Hepplewhite Corporation Jonathan Gilchrist 2,000,000
Tejas Capital, Inc. Steven Lease* 2,000,000
Accelerator Partners, Inc. Darrel Uselton 2,000,000
Brazos Capital, Inc Jim Mobitty* 2,457,000
Valores Fund, L.P. Unknown* 2,000,000
Total 34,117,403
*Note: These three companies are previously known to be Darrel Uselton controlled entities.
It is my belief/speculation, although unconfirmed, that these entities continually churn shares between themselves to give the appearance of liquidity that we witness on a daily basis on this stock. There are many days that the company has no news items, and we see an irrational amount of activity on the stock.
