When an Attorney employed by the SEC asks "why would anyone ever invest in an OTCBB or pink sheet stock since they were all scams anyway" you know that was the attitude that prevailed from the top down.
The attorney in question made a pretty good point. They WARN people against penny stocks, but many choose to ignore that warning and plunge. Then when they get ripped off, they complain.
God forbid they should do any real DD before buying. ANYONE could have figured out that CMKX was a screaming scam back in early 2003.
And the same is true for a great many of the others.