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nodummy

04/27/16 12:28 PM

#107515 RE: scion #107514

Nice they finally got Luke Zouvas!

He has helped with dozens of these S-1 shell schemes.

http://www.sec.gov/litigation/complaints/2016/comp23526-zouvas.pdf


I don't get why they never penalize the Transfer Agents for facilitating these types of schemes without questioning the obviously fraudulent share transfers being done between the nominee seed shareholders and the scammers running the scheme.

These schemes always work the same way. The whole IPO is always just a sham using fake seed shareholders and nominee officers.

Several of these IPO shams are allowed to go public every month many of which end up later becoming paid promotions sucking millions of dollars out of the pockets of retail investors. It seems like it would be so simple for the SEC to make some changes to better police the shares being created through the offering. Obviously the Transfer Agents and the Brokers are always just going to look the other way and facilitate the schemes so the SEC has to step up and make some changes.



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janice shell

04/27/16 1:09 PM

#107517 RE: scion #107514

An excerpt from Kenny Eade's book about the IHub case. (You can read a few chapters free at the Kindle site.) We all remember that the presiding judge is John Kronstadt:

Matthew Kronenberg (affectionately referred to as “Kronendork” by many attorneys who appeared in his courtroom) had a Napoleon complex, which was typical among many federal judges. Appointed for life by President George W. Bush through the recommendation of the local Congressman, he, like his brethren, marched his short frame up the stairs and roosted high above the court on his bench every day, passing judgments on strangers he had never met. Judge Kronenberg had made his mind up today to kill Brent Marks’s libel case and there was nothing that was going to change it, although he did express that his decision was a “tentative ruling” and he invited Brent, whom the tentative decision was against, to exhaust any arguments he had before lowering the boom. The judge had a permanent grimace, as if he were constantly plagued by constipation. As Brent’s mother always used to say about people like that: “If he smiled, his face would crack.”

What terrible writing! "Strangers he had never met"?? Seriously??