Replies to post #40027 on Eline Entertainment Group Inc (EEGI)

[ranger_7]

I agree, it’s pretty obvious they haven’t been convicted or suspended, otherwise it wouldn’t be trading.

[Scumbag Fraudsters]

And MDI* ran many, many times before fraud charges were filed.


But in the end they were filed.

Same could happen here - investigations take time and the SEC is extremely busy nowadays with the rampant stinky frauds.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23861 / June 16, 2017

SEC Charges Hemp Oil Company and CEO with Fraud

The Securities and Exchange Commission filed fraud charges against a Las Vegas-based hemp oil company and its CEO for inflating the company's assets on its balance sheet.

The SEC complaint filed in federal court in Nevada alleges that CannaVEST Corp. (now known as CV Sciences, Inc.) and CEO Michael Mona Jr. materially overstated the company's total assets in quarterly reports for the first and second quarters of 2013. According to the complaint, CannaVEST reported purchasing a company called PhytoSphere Systems LLC, including its existing rights under contracts with hemp production and processing facilities, for $35 million, even though Mona knew that the purported purchase price was substantially inflated. The complaint alleges that CannaVEST agreed to the purported purchase price only because CannaVEST could pay for the acquisition primarily with CannaVEST shares which Mona believed had little value at the time.

With states starting to permit the use of marijuana for personal use, a group of pot stocks soared high on the penny stock market in 2013 and 2014 before their inevitable hangover. No stock flew higher than CannaVest, which briefly hit a market valuation of $3 billion.

On Friday, the Securities & Exchange Commission filed fraud charges against CannaVest, now known as CV Sciences, and its CEO, Michael Mona, Jr. CV Sciences currently has a market capitalization of $26 million.

Both CannaVest and Mona were the subject of stories in Forbes highlighting the ridiculousness of the pot penny stock bubble. “Our sole focus is to source and supply the highest-quality industrial hemp available on the market,” Mona told Forbes at the time. For a moment, one of Mona's partners even became the first pot stock "billionaire."

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23892 / August 1, 2017

SEC Charges Eight People with Fraud in Solar Energy Pump-and-Dump

The Securities and Exchange Commission announced fraud charges in a $2 million pump-and-dump scheme involving a shell company.

The SEC's complaints, filed in federal court in Orlando, Florida on July 27, 2017, allege that, between January 2009 and March 2013, Jeffrey D. Martin of Orlando, Florida and Thomas L. Tedrow of Winter Park, Florida orchestrated a scheme to conceal Mainstream Entertainment, Inc.'s status as a shell company, merge Mainstream with a purported solar energy company and sell millions of purportedly unrestricted shares in the open market, all while flooding the market with false positive information about Mainstream. According to the SEC, Martin and Thomas Tedrow allegedly artificially inflated the price of Mainstream stock through false filings with the SEC, press releases, statements to broker-dealers and transfer agents, and by hiring a stock promoter to cold-call investors using false materials provided by Thomas Tedrow. Martin and Thomas Tedrow also allegedly engaged in matched trading designed to emulate legitimate investor interest in Mainstream while selling millions of shares into the manipulated market. The SEC's complaint also alleges that Tedrow's two sons, Christian T. Tedrow and Tyler T. Tedrow, both of Winter Park, Florida, drafted some of the false documents concerning Mainstream and received millions of purportedly unrestricted Mainstream shares that they sold in the open market without registering the shares or having a valid exemption from registration.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23895 / August 2, 2017


SEC Charges Two Individuals in $17 Million Manipulation Scheme

The Securities and Exchange Commission announced fraud and other charges against two individuals and a related company for their roles in a manipulative trading scheme involving Liberty Silver Corp., a penny stock.

The SEC's complaint, filed on August 1, 2017 in federal district court in New York, alleges that, Robert Genovese, a Canadian citizen, his company, B.G. Capital Group, Ltd. and Abraham "Avi" Mirman, the former head of investment banking at now-defunct New York broker-dealer John Thomas Financial, Inc. (JTF), were involved in a scheme concerning Liberty Silver in which Genovese sought to increase dramatically the company's share price and volume and sell millions of shares into the market. According to the SEC's complaint, between August and October 2012, Genovese schemed with Mirman to sell Liberty Silver shares to JTF's customers in part by agreeing to loan $2 million indirectly to JTF without disclosing the loan to the customers. The complaint alleges that Genovese also touted Liberty Silver in newspaper articles while failing to disclose that he had paid for the articles, that he was dumping millions of shares of Liberty Silver stock, and the financial arrangements between himself and JTF. It further alleged that Genovese engaged in manipulative trading on a particular day, increasing Liberty Silver's share price and creating the false appearance of liquidity and demand for Liberty Silver stock.