The SEC/FBI collar of these crooked CEO's and promoters is great, but somewhat frustrating too. Frustrating in the sense that these busts confirms just how common this illegal behavior is in penny stocks, particularly among non-reporting pink sheet companies.
In these cases, the SEC complaints make it clear that although the FBI was involved in the operations, it was only after each defendant already had the stock promotion scheme in mind and approached an individual they thought could help them illegally sell shares and promote their stocks. Only because this person (the complaints don't make it clear if it was the same person in each case, or different people) did the right thing and reported this contact to the FBI and became a cooperating witness did the undercover operation begin. Unfortunately for these defendants, they just chose the wrong person to help with their illegal schemes. Otherwise it seems this type of behavior is common knowledge among pink sheet promoters and insiders which makes it an ordinary, business-as-usual operation for many pink sheet companies. That includes the illegal sale of shares through bogus consulting agreements as well as undisclosed payments to stock pumpers.
I also think it is no coincidence that each of the companies name in this SEC/FBI action were non-reporting Pink Sheet companies. We all know how infinitely easier it is for companies that don't report to the SEC to conduct illegal activities, such as pump and dumps. They don't have to disclose their contracts, share issuances or even share counts. It is incredibly easy for them to conduct illegal activities as they hide in the non-reporting darkness. It boggles my mind that any "serious" investor would even look at a non-reporting pink sheet stock, as there is absolutely not enough disclosure and information available to perform any reasonable level of due diligence.
AI
