Writ Media Group Inc. (WRIT)

[Pennyprof]

Looks bad for WRIT. Here's what I found today after looking at another company and stumbled across this website.

"
May 12, 2011: Over the last couple of days, a scheme run by Tal Kapelner and his mother Ariella, known as Writers' Group Film Corp. (WRIT) has restarted its efforts to extract money from the pockets of unsuspecting investors who want to be in the movie business. Over the last 24 hours, the promotion has been so aggressive that almost every touter out there is pumping this scam. That's right, we said it. S-C-A-M! Keep reading until you get to the good part.

What's wrong? Well let's start with the fact that this company doesn't even exist in the State of California. Huh? That's right, not found. Or at least MIA. Oh and neither does it's recent "acquisition" Front Row Networks. Now we did find Writer's Group Film Corp, a 2007 registration, in Delaware and Front Row Networks, a 10 month old (that's months, not years) corporation in Nevada, but since both of these companies claim to be operating in California, they are required to be registered in the State of California. This means that if they got sued by shareholders in their resident State, they couldn't even reply to the lawsuit. Wouldn't you think that a company worth $300,000,000+ knows better?

We're not at the good part yet. Keep reading.

In the two plus months that this scam (there's that word again) has been operating, 10 press releases have been issued with 3 different dateline cities, Lancaster, Beverly Hills and Los Angeles. Which is it? The Front Row Networks website claims that the company is operating at 8200 Wilshire Blvd, Suite 200, Beverly Hills, CA. Some of the others using this address are: Endor USA, LLC; public companies Jammin Java Corp, Supatcha Resources, Inc and Pepper Rock Resources; Whyte House Music Media Group; Oakhurst Pictures; Pacific West Real Estate; and, the Law Offices of Steven Beltran. Kids, this address is a virtual office. Worse, parent company Writers' Group Film Corp is run out of a Fedex Store Mail Box in Lancaster, CA, the trailer park capital of the country! Wouldn't you think that a company worth $300,000,000 would be operating out of its own gleaming office towers rather than a mail box in Hee Haw Land and a virtual office?

We're not at the good part yet. Keep reading.

How do we come up with the $300,000,000 figure? Well according to a recent 10-Q filing by the company, during 2010 WRIT took in $55,640 for which it issued convertible notes. These notes are convertible into, now get this, 4.376 billion (with a "b") shares. Since the stock closed over 6 cents on Wednesday, and considering other convertible preferred shares issued, this makes the company worth over $300,000,000. And guess who owns 1.4 billion of these future shares. WRIT President, Tal Kapelner. All for a company who had 34 grand in the bank as of last December.

We're not at the good part yet. Keep reading.

This is not the Kapelners' first crack at a public company purportedly in the entertainment business. A few years ago, they shot their load with a failed entity known as Tally Ho Ventures, whose shell has since been sold off to a European group. Obviously, they've improved their pump and dump skills now.

We're not even going to cover the BS that is WRIT's purported line of business. It doesn't matter. Let's just get to the good part.

On January 25, 2011, WRIT executed a 1 for 1000 reverse split which brought the issued and outstanding number of shares to practically zero. All the old shareholders were effectively eliminated. Not two weeks later, according to SEC filings, $14,360 worth of the outstanding convertible notes were converted into 153 million shares of WRIT stock. Guess what the total float in this stock is right now. That's right, the same 153 million. The suckers buying into this pump and dump have been buying the Kapelners' stock for the last month. Mom and son have pocketed a conservatively estimated $4,000,000 in the process. Not a bad return for a $14,000 loan Tal gave the company last December."

http://www.pumpsanddumps.com/2011/05/writers-group-film-corp.html