PacWest Equities Inc (PWEI)

[MadDog08]

The example of PWEI supports my hypothesis that significant elements of pink trading is nothing less than "validated" confidence schemes. First, scammers like Russell Kidder put together a crew of accomplices with similar "paper" companies and/or corporate experiences, to create a perception of "legitimacy. " Next, comes the scammers investment in promoters, except this investment didn't cost the Russell Kidders a dime, because the promoters are paid with free unrestricted shares. Now it's up to the promoters to bring on all their accomplices, or insiders, to start buying huge volumes of shares at bottom prices. Next the promoters and their insiders start pumping and hyping the scam...all at the risks and losses of novice investors who want a piece of the hot stock. What makes all this so distasteful is that veil of legitimacy that only requires a colorful website, countless press releases of unsubstantiated new business, all without a dollar of revenue or a receptionist to answer investors' calls.

The SEC simply can't keep up with all the Russell Kidders out there...and that's how they get away with it.