China Wi-Max (fka CHWM)

[themostsquirrels]

Intersting article, though old. It may explain the low price:

Company in center of fraud probe based in Grafton
By Cary Spivak of the Journal Sentinel
Dec. 2, 2011

The connection between Richard Kranitz, the veteran Grafton attorney charged with fraud yesterday after an FBI sting operation, and a company central to the investigation, is closer than charging documents indicate.

Turns out that Kranitz is more than just a board member of the China Wi-Max, a telecommunications company that played a key role in the investigation, as noted in the federal charging documents. Documents filed with the Securities and Exchange Commission show that the company this year moved its headquarters from Denver to Grafton. The address for the company is the same as Kranitz's law office.

The U.S. Attorney's Office in Boston is charging Kranitz, 68, with mail and wire fraud, saying he played a key role in setting up a kickback to an undercover FBI agent posing as a manager of a New York investment fund. The agent offered to invest up to $5 million in China Wi-Max in return for a kickback equal to 50 percent of the investment, according to charging documents. The charges come out of a nationwide probe of kickbacks in the penny stock market. The yearlong investigation resulted in charges filed Thursday against 13 executives, lawyers and stock promoters nationwide.

James Prange, the Greenbush businessman charged with mail fraud for introducing Steven Berman, the chief executive of China Wi-max to the undercover agent, also plays a bigger role in the telecommunications company. The FBI affidavit that led to the charges refer to Prange as operating Northern Equity Inc. and being in the business of raising capital for emerging companies. The affidavit says Prange introduced the the undercover agent up with executives of several penny stock companies whose executives were will to pay kickbacks and that Prange received about $6,000 in kickbacks.

The China Wi-max website, however, lists Jim Prange as the company's director of investor relations.

Neither Prange or Kranitz could be reached for comment.

Links:
http://www.jsonline.com/blogs/news/dogged.html
http://nasd-law.com/blog/