SEC shuts down PSC - Penny Stock Chaser

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People get all kinds of legal advice about what kind of disclosure is required. Some heed advice, some ignore advice.

And the truly insane never get advice; they just copy what someone else is doing (or what they are TOLD by another promoter to do) and then ASSume what they are doing must be legal because that's what someone else did. Big mistake.

And then there are those who intentionally lie or omit information they don't want known in disclosures. Many promotoers omit the dates of compensation and use the mysterious unnamed "third party" compensation disclosure, which is not full disclosure, as required under the law. Also, a big mistake.

This is the first case I have seen where the specific number of shares in compensation disclosed by the promoter was part of the indictment, however. But I don't read them all, so I could be mistaken. I actually think that's kind of a minor point.

As for Twister and Factbook, the venue doesn't matter. It's still up to the commercial user to 1. state their commercial status and 2. inform readers that their stock content is compensated. Web sites are not responsible for policing that. It's the author's legal responsibility.

Also, most web sites have special terms for commercial users of their web sites; many people ignore those terms, incuding the site operators, until there is a problem. In fact, some web sites PROHIBIT commercial users and terminate accounts when there is a problem or abuse that leads to discovery of cemmercial abuse of their web site.

Well, now there's a problem. The commercial user problem is the major issue. And I bet that this case doesn't resolve it.

Like I said last week, this case will be entertaining. Mostly to see how Facebook and Twister respond to it. Their web sites were mentioned in the indictment. They can't be happy about that.