james31 and radly, the entire situation is about money. The SEC isn't going to spend money going after anybody who is only affecting peons. If you were a big political donor or connected in some other way (i.e. people who don't buy penny stocks), then you can get the attention of somebody who could help. As it is, the cards are stacked against people like us in situations like this. Looking into penny stock impropriety isn't going to benefit anyone in the SEC or any portion of the government, so it doesn't get done. The only thing that makes the most financial sense is to learn and move on (the government will at least let you deduct the loss on your tax return. If you're buying pennies in your IRA, then you're out of luck. You'll just have to learn to not do that). You could easily spend more time, effort, and money trying to get someone to look into a potential problem in pennyland than you would have originally lost. Possibly worth it if you could be assured of a fair outcome, but that's unlikely and extraordinarily time consuming, regardless. The people on the other side of the equation know this.
I would contact your congresspeople or start with your state attorney general's office if you think you have solid information. Your state's attorney general will immediately say that it's not within their jurisdiction, but they may refer you to somebody (probably the SEC--which is nameless and faceless to people like us).
Good luck to you.
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