Michael Goode – Page 23

Face Up Entertainment (OTCBB: FUEG) suspended by the SEC

Today the SEC suspended trading in Face Up Entertainment (OTCBB: FUEG), a stock that has been pumped and dumped and repumped countless times. FUEG was most recently promoted by WFWS Consulting Inc (WhisperfromWallstreet.com / OTCStockExchange.com) and Stock Appeal LLC websites (LiquidPennies.com / VIPStockAlerts.com / HeroStocks.com /StockHunter.us / StockBrain.net). It appears that the SEC has become more aggressive in suspending trading in active stock promotions: EDVP was suspended one month ago.

WFWS Consulting Inc. has been paid $5,000 cash by Stock Appeal LLC.
for the purpose of increasing public awareness of FUEG

Currently, Stock Appeal LLC has been compensated up to $35,000 USD for increased public awareness of FUEG by a Compass Capital LTD, third party.

SEC suspension notice (pdf)
SEC suspension order (pdf)

The reason for the suspension:

The Commission temporarily suspended trading in the securities of Face Up because of
questions concerning the adequacy and accuracy of publicly available information about Face
Up, including, among other things, its financial condition, the control of the company, its
business operations, and trading in its securities.

1 year chart of FUEG (click to embiggen):

[Edit 2013-4-5]: FUEG Insiders arrested and criminal complaint unsealed:

DOJ press release
Criminal complaint (pdf)

Excerpt from the press release (that quoted the criminal complaint):

FUEG was a publicly traded company that was purportedly involved in the reality gaming social network market with its principal place of business located in Valley Stream, New York. As captured through judicially authorized wiretap interceptions, the defendants coordinated control over a significant portion of FUEG shares and then promoted the stock through the dissemination of false press releases sent over the Internet. In addition, the defendants coordinated trading of FUEG shares to create the impression of increased trading volume to make FUEG appear to be an attractive purchase for unsuspecting investors. However, the defendants were unable to reap a profit from trading FUEG stock timed to the promotions, and their scheme ultimately failed.

As a result of the failed promotion of FUEG stock, GOLDSHMIDT, PUZAITZER, VAX, ORENA, GROSSMAN, AKSANOV, and KOIFMAN conspired to extort one of their co-conspirators, referred to as “CC-1” in the Complaint. In the summer of 2012, AKSANOV, KOIFMAN, GOLDSHMIDT and PUZAITZER met with CC-1 in New York, New York, and demanded that CC-1 pay them $350,000 and return shares of FUEG, or AKSANOV would “put slugs into” CC-1’s chest.

In several subsequent telephone calls and meetings, various defendants continued to demand that CC-1 repay them for their stake in the failed FUEG scheme, or they would harm CC-1. During a meeting on or about March 5, 2013, GOLDSHMIDT, PUZAITZER, ORENA and VAX met with CC-1 at a hotel in New York City and further threatened CC-1 and CC-1’s family if CC-1 did not comply with their demands.

The suspension is likely related to the numerous press releases that FUEG has put out over the last couple months:

Face Up Entertainment Group, Inc. in Discussions to Introduce Rake Where Legal to Its Subscription Poker Platform GlobeNewswire (Thu 8:00AM EDT)
Face Up Entertainment Group, Inc. Teams Up With Texas Hold’em Poker Tours (THPT) GlobeNewswire (Wed, Apr 3)
Face Up Entertainment Group, Inc. Will Collaborate With Bad Beat on Hunger, Inc. GlobeNewswire (Wed, Mar 13)
Face Up Entertainment Group, Inc. Looks to Benefit From Nations First Online Gambling Bill GlobeNewswire (Wed, Feb 27)
Face Up Entertainment Group, Inc. Sees Its Subscription Based Model as a Solution to Monetization Issues Challenging the Social Gaming Market GlobeNewswire(Thu, Feb 21)
Face Up Entertainment Group, Inc Seeks a Slice of the 2014 Projected $8.64 Billion Social Gaming MarketGlobeNewswire(Wed, Feb 20)
Face Up Entertainment Group, Inc. Sees Future Growth and Opportunity in Bar Poker Leagues All Over the NationGlobeNewswire(Fri, Feb 15)
Face Up Entertainment Sees States Leading Fight to Legalize On-Line Poker PlayGlobeNewswire(Tue, Feb 12)
Face Up Entertainment Aims to Bring Its Legal Online Gaming Platform to FacebookGlobeNewswire(Fri, Feb 8)

Disclaimer: I have no position in any stock mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

Norstra Energy (OTCBB: NORX) pump and dump by Eric Dany

Norstra Energy (OTCBB: NORX) was first promoted that I saw on April 1st, 2013 right at the market open, by TheStockFreak.com / StockPublisher.com / PennyStockCrew.com, PennyStocksProfile.com, and BreakoutStocks.com. After the market close that day NORX was promoted by Global Marketing Media LLC websites.

The Stock Freak has been compensated $100,000.00 in cash compensation from Service Media LLC for the 3 day profile of Nostra Energy (OTCBB:NORX) which services include the issuance of this release and the other opinions that we release concerning Nostra Energy (NORX).

…

Stock Publisher has been compensated $100,000.00 in cash compensation from Service Media LLC for the one day profile of Nostra Energy (OTCBB:NORX) which services include the issuance of this release and the other opinions that we release concerning Nostra Energy (NORX).

…

Penny Stock Crew has been compensated $100,000.00 in cash compensation from Service Media LLC for the 3 day profile of Nostra Energy (OTCBB:NORX) which services include the issuance of this release and the other opinions that we release concerning Nostra Energy (NORX).

PennyStocksprofile.com is owned and operated by PLVP LLC. The company Has [sic] been compensated fifteen thousand dollars for the publication of this information by a non affiliated third party Odd Marketing LLC.

Breakoutstocks.com has been compensated by a third party ODD Marketing LLC fifteen thousand dollars for a one day company advertisement on NORX.

PennyStockPlayers is owned and operated by Global Marketing Media LLC. Global Marketing Media LLC has been compensated fifty thousand dollars for a two day marketing and promotional effort on NORX by Full Service Media, LLC.

This morning at 8:10am Eastern. I received an email from alerts@StreetAuthorityFinancial.com linking to http://norxreport.com/

Disclosed budget: $426,035
Promoter: Full Service Media and Eric Dany / Eric Dany’s Stock Prospector

Paying party: Arista Theme Ltd.

Shares outstanding: 38,250,000
Previous closing price: $0.56
Market capitalization: $21 million

Excerpt from disclaimers:

This is a paid advertisement by Eric Dany and/or Eric Dany’s Stock Prospector (collectively, “EDSP”). EDSP has received $10,000 from Full Service Media, LLC in compensation for this advertisement to enhance public awareness of Norstra Energy, Inc. (hereafter “NORX”).

…

Third Party Advertiser/Advertising Agency IMPORTANT NOTICE AND DISCLAIMER: Arista Theme Ltd., the third party advertiser, has paid $426,035 USD to Full Service Media, LLC (FSM) as of April 2, 2013 for this advertising effort in an effort to build investor awareness. FSM shall retain any amounts over and above the cost of creating and distributing this email advertisement which advertises Eric Dany’s Stock Prospector Newsletter coverage of Norstra Energy, Inc., Advertising services include; production, outsourced advertising copywriting services, mailing and other related distribution services and advertising media placement costs. Arista Theme Ltd., the third party advertiser, is a company based in Tortula, BVI. Arista Theme Ltd., the third party advertiser, has represented to FSM in writing that it is not a current shareholder of Norstra Energy, Inc. and that neither it nor its affiliates will buy or sell any shares of Norstra Energy, Inc. during the period that this advertisement is being disseminated by FSM third party media vendors.

One interesting thing is the disclosure that the party that paid for the advertising, Arista Theme Ltd., has no shares of NORX. My hunch is that Arista Theme Ltd. is just a shell company created for the sole purpose of funneling money to the stock promoters from the person or entity that holds the shares so that they can hide their identity. People don’t pay for large stock promotions out of the goodness of their hearts. I have no evidence to support this belief.

PDF copy of NORX pump page.

[Edit 2013-6-21]: The budget has been increased to $3.64 million and Tim Lento has posted a scan of the hard mailer he received promoting the stock.

Disclaimer: I have no position in any stock mentioned above and no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

They’re back! Stock Castle, spam stock promoter, now pumping LSE:AIM listed Mercom Oil

Stock Castle (which is how we traders refer to this spam stock promoter even though they have used a huge number of different websites and names) is back, this time promoting a London AIM exchange-listed company, Mercom Oil (MMO:L). Most recently Stock Castle promoted USGT. Stock Castle is a spammer that has been sued by penny stock gadfly George Sharp; prior to USGT they promoted BRND, IDOI, and MSTG.

I cannot remember the last time I saw a British stock pumped — German and Canadian pumps have been far more common (although German pumps are much less common than they used to be), although the US OTCBB and OTCMarkets remain the most popular place to run pump and dumps. Mercom is interesting also because it has had a lot of volume over the past few months.

I will most likely not trade Mercom Oil, although I subscribed to LSE quotes at Interactive Brokers for a month (only $7.50 so worth it). Mercom is not currently shortable at Interactive Brokers.

Compensation: $50,000

Promoter: TheBestStocks.net (a Stock Castle spam website, owned by Dramtil Networks LTD of Belize)

Paying Party: Tigrez Patch LTD

Disclaimer:

TheBestStocks.net has received fifty thousand dollars from Tigrez Patch LTD, who was paid by a third party for the sending of this email/newsletter.

MMO multi-month chart:

Disclaimer from TheBestStocks@changedonline.com:

Disclaimer on USGT pump that I previously received from hot@changedonline.com:

SK3 Group (OTCBB: SKTO) easy short for anyone with tons of spare cash

SKTO is likely to be suspended by the SEC. See all the reasons why in this post on Promotion Stock Secrets. This presents a nice low-risk shorting opportunity. However, due to the low stock price it is not yet a large enough opportunity to entice me.

Interactive Brokers has 4 million shares of SKTO to lend with a 1.25% APR borrow rate. That gets charged on collateral ($1.00 per share) so it is the equivalent of a 25% APR on the value of any short position. With a stock price of $0.05, to short 40,0000 shares requires $100,000 in cash and gets you a $2,000 position. Assuming that SKTO gets an SEC suspension within a couple weeks and drops 75% you cover for $500 and pay $42 for the borrow for one month and you make $1.46% on your $100k of capital used in one month. Very nice low risk trade for anyone who has tons of spare cash. That doesn’t describe me so I’m hoping SKTO stocks goes up a lot more. At $0.10 and above the short starts looking really nice.

Here is the chart of another scam company that was suspended by the SEC not long ago, Southridge Enterprises (SRGE):

Goff Corp (OTCBB: GOFF) pump and dump

Goff Corp (OTCBB: GOFF) has been pumped for four days already by Victory Mark Corp and Awesomepennystocks. It has been reported on Twitter and by Promotion Stock Secrets today that people have started receiving hard mailers promoting GOFF from the Penny Stock Pillager.

Victory Mark Corp is:

SelectPennyStocks.com
PreferredPennyStocks.com
HeroPennyStocks.com

Victory Mark Corp disclaimer:

Preferredpennystocks.com is owned and operated by Victory Mark Corp LTD, 4 Lords Bank, Ladyville, Belize City, Belize. Questions regarding this website may be sent to info@Preferredpennystocks.com. The company expects to receive $500,000 USD from a third party for publication of this information.

Awesomepennystocks websites:

InsidersLab.com
AwesomePennyStocks.com
PremiumStockReport.com
PennyStocks.com
PennyStocks.de
EarningForecast.com
Pennystocksinsiders.com

Awesomepennystocks.com disclaimer:

Hard Mailer

Disclosed budget: $1,500,000
Promoter: Penny Stock Pillager / Capital Financial Media

Paying party: Pisces Enterprises Inc

Shares outstanding: 227,250,000
Previous closing price: $0.33
Market capitalization: $75 million

Excerpt from disclaimer:

CFM has received and managed a total production budget of $1,500,000 for this print advertising effort …

Scan of disclaimer (click image to view full size):

[Edit 2013-3-24]: Penny Stock Pillager landing page: http://pennystockpillager.com/goldenglory/ and PDF copy of that page. I received the first email linking to that page today. Disclaimer from that website (bold added by me):

IMPORTANT NOTICE AND DISCLAIMER: This featured company sponsored advertising issue of Penny Stock Pillager does not purport to provide an analysis of any company’s financial position, operations or prospects and this is not to be construed as a recommendation by Penny Stock Pillager or an offer or solicitation to buy or sell any security. Goff Corporation (GOFF), the “Company” featured in this issue, appears as paid advertising, paid by Pisces Enterprises Inc to provide public awareness for GOFF. Penny Stock Pillager and Capital Financial Media (CFM) have used outside research and writers using public information to create the advertisement coming from Penny Stock Pillager about GOFF. Investors/shareholders of the Company may or will sell shares at or about the time Penny Stock Pillager is distributed. Although the information contained in this advertisement is believed to be reliable, Penny Stock Pillager and CFM makes no warranties as to the accuracy of any of the content herein and accepts no liability for how readers may choose to utilize the content. Readers should perform their own due-diligence, including consulting with a licensed, qualified investment professional or analyst. Further, readers are strongly urged to independently verify all statements made in this advertisement and perform extensive due diligence on this or any other advertised company. Penny Stock Pillager is not offering securities for sale. An offer to buy or sell can be made only with accompanying disclosure documents and only in the states and provinces for which they are approved. Many states have established rules requiring the approval of a security by a state security administrator. Check with http://www.nasaa.org or call your state security administrator to determine whether a particular security is licensed for sale in your state. Many companies have information filed with state securities regulators and many will supply investors with additional information on request. CFM has received and managed a total production budget of $1,500,000 for this print advertising effort and will retain any amounts over and above the cost of production, copywriting services, mailing and other distribution expenses, as a fee for its services. *More information can be received from GOFF’s investor relations representative. Further, specific financial information, filings and disclosures as well as general investor information about publicly traded companies like GOFF, advice to investors and other investor resources are available at the Securities and Exchange Commission website www.sec.gov and www.nasd.com. Any investment should be made only after consulting with a qualified investment advisor and after reviewing the publicly available financial statements of and other information about the company and verifying that the investment is appropriate and suitable. Investing in securities is highly speculative and carries a great deal of risk especially as to new companies with limited operations and no history of earnings. The information contained herein contains forward-looking information within the meaning of section 27a of the Securities Act of 1993, as amended, and section 21e of the Securities Exchange Act of 1934, as amended, including statements regarding expected growth of the featured company. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act, GOFF notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the Company’s actual results of operations. Factors that could cause actual results to differ include the size and growth of the market, the Company’s ability to fund its capital requirements in the near term and in the long term; pricing pressures, technology issues etc.

Disclaimer: I am long 20,000 shares of GOFF in one account and short 20,000 shares in another account — i have no net position; I have no relationship with any parties mentioned. I am a day-trader and I may change my position in this stock at any time. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

Prince Mexico SA (OTCBB: LUVE) pump and dump

Today is the first day of significant volume in Prince Mexico SA (OTCBB: LUVE). At least one person on Twitter reported getting a call from a boiler room promoting the stock. There is also a report up at http://www.luvereport.com/

Disclosed budget: $1,800,000
Promoter: Nexus Consulting Solutions & Goldman SmallCap Research

Paying party: Not disclosed

Shares outstanding: 56,000,000
Previous closing price: $0.75
Market capitalization: $42 million

Excerpt from disclaimers:

Goldman Small Cap Research has been compensated by a third party in the amount of $4,000 for a research subscription service.

…

Nexus Consulting Solutions … We have been compensated by a third party up to $1,800,000 for marketing awareness for Prince Mexico S.A. (OTCQB: LUVE)

Goldman Small Cap Research disclaimer:

Further disclaimer: luvedisclaimer

PDF copy of LUVE pump page

SEC takes stand against wash trading

A week ago the SEC issued a litigation release stating that it had sued Robert C. Crane for market manipulation and had already obtained a settlement. What is unusual is that while Crane engaged in wash sale trading in an apparent attempt to “create the false appearance of an active and liquid market for two securities,” his attempts were unsuccessful and he did not profit from the scheme. The SEC obtained a penny stock bar against Crane but did not seek a financial penalty.

Some have said that this is a waste of the SEC’s time when they could be acting against people who actually profit from their malfeasance. I agree with the SEC’s actions in this case because it sends a clear message that manipulative trading is illegal and will be investigated. You don’t have to do it well and make lots of money for the SEC to come after you. I can only hope that the SEC is investigating wash trading in large pump and dumps (like those of Awesomepennystocks.com) and looking to bring the hammer down on those traders as well.

Litigation release
SEC complaint

From the complaint:

17. In June 2010, Crane executed wash sales in Argentex and ERHE stock.

18. In each of the wash sale transactions, Crane bought and sold shares of stock from one
ofhis accounts into another one of his accounts with no change ofbeneficial ownership over
those securities. He paid a commission on both sides ofthe transaction. The scheme was
designed to create the appearance ofan active and liquid market for those securities.

19. By engaging in these wash sales, Crane compromised the integrity ofthe market by
creating the appearance of genuine trading activity for the securities in which he transacted. In
fact, Crane’s trades frequently inflated the volume, and, on one occasion, the price ofthe
securities he manipulated.

SEC sues penny stock lawyers Luis Carillo & Wade Huettel & others for pump and dumps

The SEC sued penny stock lawyers Luis Carillo and Wade Huettel along with a bunch of other people in a lawsuit filed today. Carillo & Huettel have served as the legal counsel and given opinion letters to make restricted stock free trading in dozes of huge pump and dump companies, including Aweseomepennystocks.com pumps such as NSRS, SNPK, and PRTN.

See the PumpsandDumps.com article on Carillo & Huettel (the firm) shutting its doors. I wonder if this lawsuit might make other crooked penny stock lawyers think twice about abetting stock fraud. Only time will tell.

SEC ligitation release
SEC Legal complaint (PDF)

From the litigation release:

The SEC alleges that San Diego-based attorneys Luis Carrillo and Wade Huettel were central participants in the scheme who helped the promoters conceal their ownership interests in the companies, drafted misleading public filings, and provided misleading legal opinions. As part of the scheme, their law firm, Carrillo Huettel LLP, secretly received proceeds of stock sales in the form of a sham “loan.”

Also sued were the Kirks and their company Skymark Research, who have been sued before. The companies involved in the pumps were also named: Pacific Blue Energy (PBEC) and Trade Show Marketing Company (TSHO):

According to the SEC’s complaint, Canadian stock promoters John Kirk, Benjamin Kirk, Dylan Boyle, James Hinton, and their associates, used false and misleading promotions to pump up trading in the stock of the two microcap companies and made millions when they secretly dumped their own shares. Microcap companies typically have limited assets and low-priced stock that trades in low volumes. The SEC alleges that the promoters sent investors false and misleading emails about the companies through two websites they controlled, Skymark Research and Emerging Stock Report, and used “boiler room” sales calls to tout the stocks, falsely claiming that the recommendations were based on independent research by Skymark and Emerging Stock Report.

SEC to Hunter Twins: Here’s a slap on the wrist, now get back to screwing investors

The SEC settled its lawsuit against Britain’s Hunter twins with perhaps the single worst settlement in the history of the agency. For $175,000 the Hunter Twins settled all the charges. Considering how blatant their fraud was (see my blog post about it from April 20th, 2012) I find it nothing short of stupefying how little the SEC settled for. Janice Shell reminded me that there is a parallel criminal case against the twins; I will update this post when I find out what has been going on with that.

The brothers settled for less than 10% of the total alleged profits from their fraudulent scheme — $1.2 million which was paid to them for their stock newsletter / software (Daytradingrobot.com and Doublingstocks.com) and $1.865 million in payments from various parties to promote stocks. And the amounts of money mentioned in the SEC’s lawsuit only include a couple of the pump and dumps that the Hunter twins ran.

Under today’s announced settlement, the Hunter brothers, without admitting or denying the allegations in the Commission’s complaint, consented to the entry of a judgment requiring Alex Hunter to pay a $100,000 penalty, requiring Tom Hunter to pay a $75,000 penalty, and enjoining both brothers individually from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

Disclaimer: I have no position in any stock mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

American Graphite Technologies (OTCBB: AGIN) $1.1m hard mailer pump & dump

American Graphite Technologies (OTCBB: AGIN) has been on the watchlist of Prepromotion Stocks since back in January. It is now a confirmed hard mailer pump. A former Tim Challenge student emailed me this morning with photos he took of it. Click on each image to see a full-size version. Disclaimer here.

[Update 3/14/2013]: See a scan of the full 26-page mailer (40 megabyte pdf). Thanks to Sam.

Disclosed budget: $1,160,000
Promoter: Wall Street Revelator

Paying party: Heavenly Vision Ltd.

Shares outstanding: 78,218,750
Previous closing price: $0.89
Market capitalization: $69 million

Report on Promotion Stock Secrets on AGIN.

Excerpt from disclaimer:

Wall Street Revelator is a bona fide publication of general and regular circulation … Wall Street Revelator has received a total amount of twenty seven thousand … Heavenly Vision Ltd. paid one million one hundred sixty thousand …

The previous Wall Street Revelator pump was MAXE, which did poorly:

[Update 3/14/2013]:

Thee is now an online pump page for AGIN: http://graphenestock.net/trends-agin/

Partial disclaimer: “Graphenestock.net and its affiliate companies have been paid three hundred thousand dollars in cash by Heavenly Vison for investor relations work.”

PDF copy of pump page.

Disclaimer: I am long 3,000 shares of AGIN purchased at $0.93 this morning. [Update 3/13/2012 – I sold my shares for a small gain soon after the open]. I am a day-trader and may sell these shares at any time. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.