This should still be an issue
The U.S. Securities and Exchange Commission has obtained an asset freeze against a Montreal couple after charging the pair with fraudulently touting penny stocks through their own website and social networks such as Facebook and Twitter.
Details of the case are contained in a SEC complaint that was filed in the U.S. District Court, Southern District of Florida on June 23, 2010.
It alleges that Carol McKeown and Daniel Ryan -- who hold themselves out as husband and wife -- used the website www.PennyStockChaser.com to tout dozens of U.S. companies, while earning proceeds of $2.4 million from the scheme.
At the same time, McKeown and Ryan liquidated millions of shares of the same companies through their two firms Downshire Capital Inc. and Meadow Vista Financial Corp., the complaint alleges.
In return, affiliates of the touted companies or third parties allegedly gave shares to Downshire and Meadow Vista, who then sold the shares in the open market while PennyStockChaser was simultaneously forecasting massive price increases for the issuers.
The issuers mentioned in the complaint include Converge Global Inc., (OTO: CVRG, Stock Forum), Biocentric Energy Holdings Inc. (OTO: BEHL, Stock Forum), Bluewave Group Inc. (OTC:BB, BLEW, Stock Forum), Avro Energy Inc. (OTC: BB, AVOE, Stock Forum), Atlantic Wind & Solar Inc. (OTO: AWSL, Stock Forum), and MSE Enviro-Tech Corp. (OTO: MSE, Stock Forum).
The SEC goes on to allege that on at least two occasions, McKeown and Ryan failed to fully disclose on PennyStockChaser the full amount of the stock that they and their companies received in exchange for touting. These infractions are alleged to have occurred between April 2009, and early 2010.
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