Colorado Goldfields Inc (fka CGFI)

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People are scared to invest here. That could be the best thing for buying low before operations begin. There are the (if) speculations being promoted, suggesting that the plan for operations start up is a hoax. It is not legal to lie in order to drive the price down so you can get cheap shares and it doesn't look to me like that is what is going on. The hosts of that web site seem genuinely pissed off.

I looked at that web site and can see where people who've lost a lot of money are PO'd. Of course, who can blame them, not me. My question at this point is whether or not a different circumstance exists at this point in time.

I am not sure what they are basing their complaints on. They seem to be alleging some type of ill gotten gains scam but I am not sure what specifically they are charging as wrong doing. I don't see any evidence for a legal case. It is illegal to use false or misleading statements to indice people to buy or sell securities. It is also illegal to commit fraud by manipulating the price of stock. If that is the complaint, I'd like to see some evidence.

Section 9(a)(4) also prohibits the use of false or misleading [statements] with respect to any material fact, by brokers, dealers, or other persons in order to induce others to purchase or sell securities. The practice of spreading false rumors or bribing someone to hype a stock when a broker, dealer or other offeror is trying to unload it has, as its only objective, the goal of fueling investor enthusiasm. The practice of bribing in such situations is also unlawful under a separate section, 9(a)(5).

However, the section 9 provisions do not cover the manipulation of unregistered securities. The only statutory basis for attacking over-the-counter stocks are the general anti-fraud provisions of the Exchange Act, together with section 17 of the Act. Nonetheless, the SEC has enforced manipulation of unregistered stocks on the same level as registered securities because, as the SEC concluded, there is no reasonable distinction between manipulation of over-the-counter prices and manipulation of prices on a national securities exchange.