Montalvo Spirits (OTCBB: TQLA) pump and dump

This morning at 8:14am I received an email from Insiderwealthalert.com promoting Montalvo Spirits (OTCBB: TQLA). The email linked to the pump landing page http://www.tqlareport.com/tqla_landing.html

Disclosed budget: $380,000

[Edit 2013-6-26]: budget increased to $980,000

Promoter: Andrew Carpenter / Wall Street Revelator & Full Service Media LLC

Paying party: Belmont Media Group

Shares outstanding: 66,900,012
Previous closing price: $0.83
Market capitalization: $55 million

Excerpts from disclaimers:

To Date Andrew Carpenter has received $15,000 for the endorsement of this and expects to receive new subscriber revenue as a result of this advertising effort.

Belmont Media Group, Inc., the third party advertiser, has paid $380,000 USD to Full Service Media, LLC (FSM) as of May 16, 2013 for this advertising effort in an effort to build investor awareness.

tqla

 

Andrew Carpenter / Wall Street Revelator Disclaimer:

ANDREW CARPENTER’S WALL STREET REVELATOR NEWSLETTER IMPORTANT NOTICE AND DISCLAIMER: Andrew Carpenter (Endorser) track record was compiled from calculations derived from documentation of his trading strategies. No representation is made that actual purchases and sales were made at the prices stated. Facts stated in this article were supplied to endorser from third-party sources. Endorser makes no representations as to such facts, reliability, accuracy or completeness. Endorser is not responsible for errors or omissions. Endorser does not claim any special expertise or knowledge regarding the lighting technology industry. Endorser is neither acting as an investment advisor nor providing individual investment advice. Andrew Carpenter and The Wall Street Revelator Newsletter OWNS NO SHARES, OPTIONS, WARRANTS in Montalvo Spirits, Inc. (TQLA). Also, Montalvo Spirits, Inc. has neither approved nor paid for this specific advertisement. Readers should perform their own due diligence. The information presented is provided for information purposes only and the endorsement is not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities. Endorser has not taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. Any securities referenced by Endorser may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about such investments. Nothing in the endorsement constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation to you. Information, opinions and estimates referenced in the endorsement reflect a judgment at its original date of publication and are subject to change without notice. The price and value of the securities mentioned in the endorsement can fall as well as rise, and may have a high level of volatility. High volatility securities may experience sudden and large falls in their value, leading to losses. High volatility investments may also be difficult to sell. Similarly, it may prove difficult for you to obtain reliable information about the value or risks to which such an investment is exposed. The endorsement may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the report refers to website material of Endorser, the Endorser has not reviewed any recommended or linked site and takes no responsibility for the content contained therein. Such address or hyperlink is provided solely for your convenience and information and the content of the linked site does not in any way form part of the endorsement. Accessing such websites or following any link shall be at your own risk. Further, you are advised to read and carefully consider the additional explanations of risk factors in Montalvo Spirits, Inc. SEC filings that can be found online in the SEC EDGAR database at www.SEC.gov. Neither Andrew Carpenter nor his publication is offering securities for sale. To Date Andrew Carpenter has received $15,000 for the endorsement of this and expects to receive new subscriber revenue as a result of this advertising effort. Finally, penny stocks are EXTREMELY RISKY. You should consult with your registered investment adviser before investing to determine suitability and risk tolerance. Andrew Carpenter and The Wall Street Revelator newsletter assume no risk for investor losses or profits. The information contained herein contains forward-looking information within the meaning of Section 27a of the Securities Act of 1933, 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, statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect Montalvo Spirits, Inc. actual results of operations. IMPORTANT NOTICE! Option and stock investing involves risk and is not suitable for all investors. Only invest money you can afford to lose in stocks and options. Past performance does not guarantee future results. The trade entry represents the price of the security at the time the trade recommendation was made and the trade exit represents the price of the security at the time the trade recommendation was made. The Wall Street Revelator Newsletter trade record does not represent actual investment results. Trade examples are simulated and have certain limitations. Simulated results do not represent actual trading. Since the trades may not have been executed, the results may have under or over compensated for the impact, if any, of certain market factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

Full Service Media Disclaimer:

Third Party Advertiser/Advertising Agency IMPORTANT NOTICE AND DISCLAIMER: Belmont Media Group, Inc., the third party advertiser, has paid $380,000 USD to Full Service Media, LLC (FSM) as of May 16, 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 Andrew Carpenter’s Wall Street Revelator Newsletter coverage of Montalvo Spirits, Inc., Advertising services include; production, outsourced advertising copywriting services, mailing and other related distribution services and advertising media placement costs. Belmont Media Group, Inc., the third party advertiser, is a company based in Charlestown Nevis. Belmont Media Group, Inc., the third party advertiser, has represented to FSM in writing that it is not a current shareholder of Montalvo Spirits, Inc. and that neither it nor its affiliates will buy or sell any shares of Montalvo Spirits, Inc. during the period that this advertisement is being disseminated by FSM third party media vendors. This is sponsored advertising and does not purport to provide an analysis of the featured company’s financial position, operations or prospects and is not to be construed as a recommendation or solicitation by FSM to buy or sell any security. FSM is a firm which refers and facilitates the services of third-party vendors and advertising related service providers to persons wishing to sponsor advertising featuring publicly-traded companies. FSM is not a financial analyst, investment advisor or broker/dealer. The services provided by FSM in connection with this advertisement are limited to the introduction of third party advertiser to copywriter services and paid endorser, the renting of distribution list(s), and managing the production and distribution of this advertisement. FSM is not responsible for the endorsement of this advertisement, which is the sole responsibility of Andrew Carpenter’s Wall Street Revelator Newsletter. Andrew Carpenter’s Wall Street Revelator Newsletter expects to generate new subscriber revenue as a result of this advertising effort. Neither FSM nor its members have an ownership interest in Andrew Carpenter’s Wall Street Revelator Newsletter or any of its affiliates, and neither Andrew Carpenter’s Wall Street Revelator Newsletter nor its affiliates have an equity interest in FSM. Neither FSM nor its members will trade in the securities of Montalvo Spirits, Inc. FSM makes no warranties as to the accuracy of the content of this advertisement and expressly disclaims and assumes no liability for how readers may choose to utilize the content of this advertisement. Readers are strongly urged to independently verify all statements made in this advertisement and to perform their own due diligence on this or any other advertised company, including but not limited to consulting with a qualified investment professional and reviewing the publicly available financial statements of, and other information about Montalvo Spirits, Inc. You should also determine that an investment in Montalvo Spirits, Inc. company is appropriate and suitable for you. Montalvo Spirits, Inc. is traded on the OTCQB (trading symbol: TQLA). Its stock is registered under the Securities Act of 1933, as amended, and its periodic and other reports filed under the Securities Exchange Act of 1934, as amended, are publicly available from the Securities and Exchange Commission at its website at http://www.sec.gov. This website also contains general investor information about publicly-traded companies, advice to investors and other investor resources. Other investor resources are available from the Financial Industry Regulatory Authority through its website at http://www.finra.org. Many states have established rules requiring approval by the state securities administrator to permit sales of a security to its residents. Check with the North American Securities Administrators Association through its website at http://www.nasaa.org or call your state securities administrator to determine whether a particular security may be purchased by you as a resident of your state. Many companies have filed information with state securities regulators and many companies will supply prospective investors with additional information upon request. Investing in securities is highly speculative and carries a great deal of risk, especially as to newer companies with comparatively short operating histories and limited earnings This advertisement contains forward-looking statements regarding Montalvo Spirits, Inc. its business and prospects. Such forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions created by these laws. This advertisement may provide the addresses of or contain hyperlinks to outside or third-party websites, FSM has not reviewed any such websites and takes no responsibility for the contents thereof or any possible effects resulting from accessing any such websites. The contents of any such websites do not in any way constitute a part of this advertisement. Accessing such websites or following any link shall be at your own risk.

PDF copy of pump page.

[Update 2013-6-26]: Updated disclosure:

NDREW CARPENTER’S WALL STREET REVELATOR NEWSLETTER IMPORTANT NOTICE AND DISCLAIMER: Andrew Carpenter (Endorser) track record was compiled from calculations derived from documentation of his trading strategies. No representation is made that actual purchases and sales were made at the prices stated. Facts stated in this article were supplied to endorser from third-party sources. Endorser makes no representations as to such facts, reliability, accuracy or completeness. Endorser is not responsible for errors or omissions. Endorser does not claim any special expertise or knowledge regarding the lighting technology industry. Endorser is neither acting as an investment advisor nor providing individual investment advice. Andrew Carpenter and The Wall Street Revelator Newsletter OWNS NO SHARES, OPTIONS, WARRANTS in Montalvo Spirits, Inc. (TQLA). Also, Montalvo Spirits, Inc. has neither approved nor paid for this specific advertisement. Readers should perform their own due diligence. The information presented is provided for information purposes only and the endorsement is not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities. Endorser has not taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. Any securities referenced by Endorser may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about such investments. Nothing in the endorsement constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation to you. Information, opinions and estimates referenced in the endorsement reflect a judgment at its original date of publication and are subject to change without notice. The price and value of the securities mentioned in the endorsement can fall as well as rise, and may have a high level of volatility. High volatility securities may experience sudden and large falls in their value, leading to losses. High volatility investments may also be difficult to sell. Similarly, it may prove difficult for you to obtain reliable information about the value or risks to which such an investment is exposed. The endorsement may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the report refers to website material of Endorser, the Endorser has not reviewed any recommended or linked site and takes no responsibility for the content contained therein. Such address or hyperlink is provided solely for your convenience and information and the content of the linked site does not in any way form part of the endorsement. Accessing such websites or following any link shall be at your own risk. Further, you are advised to read and carefully consider the additional explanations of risk factors in Montalvo Spirits, Inc. SEC filings that can be found online in the SEC EDGAR database at www.SEC.gov. Neither Andrew Carpenter nor his publication is offering securities for sale. To Date Andrew Carpenter has received $15,000 for the endorsement of this and expects to receive new subscriber revenue as a result of this advertising effort. Finally, penny stocks are EXTREMELY RISKY. You should consult with your registered investment adviser before investing to determine suitability and risk tolerance. Andrew Carpenter and The Wall Street Revelator newsletter assume no risk for investor losses or profits. The information contained herein contains forward-looking information within the meaning of Section 27a of the Securities Act of 1933, 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, statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect Montalvo Spirits, Inc. actual results of operations. IMPORTANT NOTICE! Option and stock investing involves risk and is not suitable for all investors. Only invest money you can afford to lose in stocks and options. Past performance does not guarantee future results. The trade entry represents the price of the security at the time the trade recommendation was made and the trade exit represents the price of the security at the time the trade recommendation was made. The Wall Street Revelator Newsletter trade record does not represent actual investment results. Trade examples are simulated and have certain limitations. Simulated results do not represent actual trading. Since the trades may not have been executed, the results may have under or over compensated for the impact, if any, of certain market factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

Third Party Advertiser/Advertising Agency IMPORTANT NOTICE AND DISCLAIMER: Belmont Media Group, Inc., the third party advertiser, has paid $380,000 USD and is expecting an additional $600,000 USD to Full Service Media, LLC (FSM) as of May 20, 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 Andrew Carpenter’s Wall Street Revelator Newsletter coverage of Montalvo Spirits, Inc., Advertising services include; production, outsourced advertising copywriting services, mailing and other related distribution services and advertising media placement costs. Belmont Media Group, Inc., the third party advertiser, is a company based in Charlestown Nevis. Belmont Media Group, Inc., the third party advertiser, has represented to FSM in writing that it is not a current shareholder of Montalvo Spirits, Inc. and that neither it nor its affiliates will buy or sell any shares of Montalvo Spirits, Inc. during the period that this advertisement is being disseminated by FSM third party media vendors. This is sponsored advertising and does not purport to provide an analysis of the featured company’s financial position, operations or prospects and is not to be construed as a recommendation or solicitation by FSM to buy or sell any security. FSM is a firm which refers and facilitates the services of third-party vendors and advertising related service providers to persons wishing to sponsor advertising featuring publicly-traded companies. FSM is not a financial analyst, investment advisor or broker/dealer. The services provided by FSM in connection with this advertisement are limited to the introduction of third party advertiser to copywriter services and paid endorser, the renting of distribution list(s), and managing the production and distribution of this advertisement. FSM is not responsible for the endorsement of this advertisement, which is the sole responsibility of Andrew Carpenter’s Wall Street Revelator Newsletter. Andrew Carpenter’s Wall Street Revelator Newsletter expects to generate new subscriber revenue as a result of this advertising effort. Neither FSM nor its members have an ownership interest in Andrew Carpenter’s Wall Street Revelator Newsletter or any of its affiliates, and neither Andrew Carpenter’s Wall Street Revelator Newsletter nor its affiliates have an equity interest in FSM. Neither FSM nor its members will trade in the securities of Montalvo Spirits, Inc. FSM makes no warranties as to the accuracy of the content of this advertisement and expressly disclaims and assumes no liability for how readers may choose to utilize the content of this advertisement. Readers are strongly urged to independently verify all statements made in this advertisement and to perform their own due diligence on this or any other advertised company, including but not limited to consulting with a qualified investment professional and reviewing the publicly available financial statements of, and other information about Montalvo Spirits, Inc. You should also determine that an investment in Montalvo Spirits, Inc. company is appropriate and suitable for you. Montalvo Spirits, Inc. is traded on the OTCQB (trading symbol: TQLA). Its stock is registered under the Securities Act of 1933, as amended, and its periodic and other reports filed under the Securities Exchange Act of 1934, as amended, are publicly available from the Securities and Exchange Commission at its website at http://www.sec.gov. This website also contains general investor information about publicly-traded companies, advice to investors and other investor resources. Other investor resources are available from the Financial Industry Regulatory Authority through its website at http://www.finra.org. Many states have established rules requiring approval by the state securities administrator to permit sales of a security to its residents. Check with the North American Securities Administrators Association through its website at http://www.nasaa.org or call your state securities administrator to determine whether a particular security may be purchased by you as a resident of your state. Many companies have filed information with state securities regulators and many companies will supply prospective investors with additional information upon request. Investing in securities is highly speculative and carries a great deal of risk, especially as to newer companies with comparatively short operating histories and limited earnings This advertisement contains forward-looking statements regarding Montalvo Spirits, Inc. its business and prospects. Such forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions created by these laws. This advertisement may provide the addresses of or contain hyperlinks to outside or third-party websites, FSM has not reviewed any such websites and takes no responsibility for the contents thereof or any possible effects resulting from accessing any such websites. The contents of any such websites do not in any way constitute a part of this advertisement. Accessing such websites or following any link shall be at your own risk.

 

Disclaimer: [Update 2013-6-26: I am short 11,890 shares of TQLA.]  I have no position in any stock mentioned and I have 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.

Brazil Minerals (OTCBB: BMIX) Tobin Smith hard mailer pump and dump

Yesterday during the trading day I saw a subscriber of Tom McCarthy’s Prepromotion Stocks service alert in chat that he had received a hard mailer from Tobin Smith promoting Brazil Minerals (OTCBB: BMIX).

gdot123

Wife just texted me..got hard mailer for BMIX from NBT Equities…Tobin Smith

Posted May 15, 3:00 PM

I bought 7,500 shares at $0.724 and I still hold those shares (I will sell them soon, possibly as soon as tomorrow’s open). After the market close a TimAlerts subscriber reported that he had also received the mailer. I tweeted about that and a few minutes after I tweeted, Peter Pan (a popular penny stock trader on Twitter that I do not follow) tweeted that he had received the mailer and he uploaded a picture:bmix (1)

As of the time I post this I have not seen anyone post a picture of the disclaimer, although multiple people have said that the budget is disclosed as $1.6m (of course all promotion budgets should be taken with a few kilos of salt).

Disclosed budget: $1,600,000

Promoter: NBT Equities Research / Tobin Smith

Paying party: ???

Shares outstanding: 69,963,463
Previous closing price: $0.87
Market capitalization: $60 million

 

Interestingly, Tobin Smith first promoted BMIX back on May 6th via email and on his website at http://www.nbtequitiesresearch.com/sites/default/files/uploads/InitiatingCoverageBrazilMinerals1.pdf but the stock did not get much volume until yesterday.

NBT Equities / Tobin Smith Disclaimer excerpt:

NBT Equities Research has received $40,000 compensation from LB Ventures, a third party shareholder for coverage.

 

bmix

 

Disclaimer: I am long 7500 shares of BMIX that I intend to sell within the next day or two; I have 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.

iTalk (OTCBB: TALK) pump and dump from the folks who brought you GNIN

The Brighton Markets group of websites sent out teaser emails about their new pump coming up after the close yesterday, giving away their promotion of TALK in the disclaimer. Thanks to Tim Lento for noticing that first.

Their most recent pump, and by far their longest-lasting and most successful, was GNIN. I previously wrote about that stock promotion (in that blog post I also link all their websites that I am familiar with). I also made a bunch of money trading it, as shown by the two trades below (I had a lot of other trades but essentially all of my gains are shown by the two trades below; contrary to what the trades indicate, I made most of my money shorting; I had shorted early and boxed my shares however, which is why most of my profit appears to come from a long).

 

$2,685profitGNINShort Stock
IB batch import through 3/10

Posted by MichaelGoode /
http://profit.ly/1MnOPP

 

$11,161profitGNINLong Stock
Speedtrader batch import through 3/10/2013

Posted by MichaelGoode /
http://profit.ly/1MnOOb

gnin

As you can see from the chart, the Green Innovations (GNIN) promotion lasted a long time and the promoters got a big second spike after the first dump. iTalk (TALK) has been a far different promotion with far higher volume initially, presumably from people buying in response to calls from the boiler rooms connected with Brighton Markets. The steep ascent and high volume is also likely due partly to the hot pump market and partly to the success of GNIN. I think it likely that TALK will never get close to GNIN’s highs because of the higher volume at the beginning of the pump. Also, short sellers who were squeezed on GNIN will be more cautious shorting TALK, reducing the chances of a short squeeze.

talk

 

The promotion of TALK by the websites associated with Brighton Markets has not even formally begun (although as I noted above, the pump started over a week ago, likely starting with calls from boiler rooms). But in the teaser emails sent out Friday night the disclaimer clearly states that they are promoting TALK. The disclaimer in the form of an image is even named “TALK_disclaimer”

talk_disclaimerIf you can’t read the fine print, see the full disclaimer at http://investors-alliance.com/edis/talk_disclaimer.php

Excerpt from disclaimer:

Please be advised that investors-alliance.com has been paid $40,000 USD per week by Crystal Financial LLC to send this alert on TALK to perform promotional and advertising services.

Promotion budget: $40,000 per week
Paying party: Crystal Financial LLC

Shares outstanding: 42,500,000
Market cap (as of 5/3/2013): $48.5 million

How will I trade this? I will consider buying it Monday but if I did that I would not hold past Tuesday. The GNIN pump’s high was the day it was finally promoted by all the older Brighton websites, so I will be looking to short once they start promoting TALK via emails.

[Edit 2013-5-28]: I came across an online pump page a week or two ago on TALK as well. It is at http://italkreport.com/

Disclaimer (emphasis mine):

IMPORTANT NOTICE AND DISCLAIMER: This advertising issue of Profit Seeker Online 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 Profit Seeker Online or an offer or solicitation to buy or sell any security. iTalk, (TALK), the company featured in this issue, appears as paid advertising by Crystal Financial, LLC to provide public awareness for TALK for the period of May 24, 2013 through June 24, 2013. Profit Seeker Online and Nextor Media Corp. have used outside research and writers using public information to create the advertisement coming from Profit Seeker Online about TALK. Although the information contained in this advertisement is believed to be reliable, Profit Seeker Online and Nextor Media Corp. make 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. Profit Seeker Online 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. Nextor Media Corp. has managed a total production budget of up to $2,750,000 from Crystal Financial, LLC for advertising efforts starting May 24, 2013 until June 24, 2013 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. Profit Seeker Online is paid $7,800 as an editorial fee from Nextor Media Corp. and also expects to receive new subscriber revenue as a result of this advertising effort. *More information can be received from TALK’s investor relations firm. Further, specific financial information, filings and disclosures as well as general investor information about publicly traded companies like TALK, 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, TALK 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.

PDF copy of pump page.

That hasn’t helped the stock price:
TALK

 

Disclaimer: [Edit 2013-5-28 — No position] I have no net position in TALK; I am short 10,000 shares in one account and long 10,000 shares in another account. I may change my position at any time. I have no relationship with any parties mentioned above except that I did receive an anonymous threat to kill my wife and daughter, purportedly sent by these promoters but almost certainly not from them. 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.

 

Tungsten Corp (OTCBB: TUNG) pump and dump

Yesterday during the trading day I saw someone in the TimAlerts chat mention they had come across the online landing page promoting Tungsten Corp (OTCBB: TUNG); a link to that website had also been posted on iHub a few days ago. The budget on the website was initially listed as $900,000 but has since been increased. The website is http://tungstennow.com/

 

Disclosed budget: $2,250,000 [Edit 2013-5-6]: The budget in the disclaimer has been decreased again to $900,000 from $2,250,000
Promoter: Eric Dickson’s Breakaway Stocks and List Data Solution

Paying party: Westway International, LLC

Shares outstanding: 65,000,000
Previous closing price: $1.03
Market capitalization: $67 million

tung_screenshot

 

Excerpt from disclaimer:

Tungsten Corp, (TUNG), the company featured in this issue, appears as paid advertising byWestway International, LLC to provide public awareness for TUNG. Breakaway Stocks and List Data Solution (LDS) have used outside research andwriters using public information to create the advertisement coming fromBreakaway Stocks about TUNG.

LDS hasmanaged a total production budget of up to $2,250,000 for advertising efforts andwill retain any amounts over and above the cost of production, copywriting services,mailing and other distribution expenses, as a fee for its services. Breakaway Stocks is paid $5,000 as an editorial fee fromLDS and also expects to receive newsubscriber revenue as a result of this advertising effort.

Full disclaimer:

IMPORTANTNOTICE AND DISCLAIMER: This advertising issue of Breakaway Stocks 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 Breakaway Stocks or an offer or solicitation to buy or sell any security. Tungsten Corp, (TUNG), the company featured in this issue, appears as paid advertising byWestway International, LLC to provide public awareness for TUNG. Breakaway Stocks and List Data Solution (LDS) have used outside research andwriters using public information to create the advertisement coming fromBreakaway Stocks about TUNG. Although the information contained in this advertisement is believed to be reliable, Breakaway Stocks and LDSmakes nowarranties as to the accuracy of any of the content herein and accepts no liability for howreadersmay choose to utilize the content.Readers should performtheir own due-diligence, including consultingwith a licensed, qualified investment professional or analyst. Further, readers are strongly urged to independently verify all statementsmade in this advertisement and performextensive due diligence on this or any other advertised company. Breakaway Stocks is not offering securities for sale. An offer to buy or sell can bemade onlywith accompanying disclosure documents and only in the states and provinces forwhich they are approved.Many states have established rules requiring the approval of a security by a state security administrator. Checkwith http://www.nasaa.org or call your state security administrator to determinewhether a particular security is licensed for sale in your state. Many companies have information filedwith state securities regulators andmanywill supply investorswith additional information on request. LDS hasmanaged a total production budget of up to $2,250,000 for advertising efforts andwill retain any amounts over and above the cost of production, copywriting services,mailing and other distribution expenses, as a fee for its services. Breakaway Stocks is paid $5,000 as an editorial fee fromLDS and also expects to receive newsubscriber revenue as a result of this advertising effort. *More information can be received fromTUNG’s investor relations firm. Further, specific financial information, filings and disclosures aswell as general investor information about publicly traded companies like TUNG, advice to investors and other investor resources are available at the Securities and Exchange Commissionwebsitewww.sec.gov andwww.nasd.com. Any investment should bemade only after consultingwith 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 newcompanieswith limited operations and no history of earnings. The information contained herein contains forward-looking Informationwithin themeaning 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 accordancewith the safe harbor provisions of the Private Securities LitigationReformAct, TUNGnotes that statements contained herein that look forward in time,which include everything other than historical information, involve risks and uncertainties thatmay affect the Company’s actual results of operations. Factors that could cause actual results to differ include the size and growth of themarket, the Company’s ability to fund its capital requirements in the near termand in the long term; pricing pressures, technology issues etc.

PDF copy of TUNG pump page.

[Edit 2013-5-13 3:30pm] Below are two photos taken of a hard mailer received by a TimAlerts subscriber this afternoon. While it is possible that he is a promoter and that no such mailers were sent, the images are not photoshopped (the EXIF data indicated the photos were taken by an iPhone 4s 12 minutes prior to me receiving them.

tung1b tung1a

Disclaimer: [Edit 2013-5-3 3:30pm: I am long 3,000 TUNG from $1.05. I may sell these shares at any time] 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.

Polar Petroleum Corp (OTCBB: POLR) pump and dump

Prior to the open today I received an email from Marketing@insiderwealthalert.com promoting POLR. The email linked to the website https://www.hardassetreport.com/landing/

One way to find out early about these online landing page pumps (many of which also have mailers) is to subscribe to a bunch of really crappy email pumpers: they will often rent their list for pumps like this. Insiderwealthalert.com’s disclaimer stated:

In accordance with Section 17(b) of the Securities Act of Nineteen Thirty Three, you are hereby advised that Eastman Communications, Inc. (ECI) is receiving a fee between $7,000 and $15,000, from an independent third party as compensation for the distribution of this advertisement

Considering the high price and market cap and low budget I will look to sell this short soon. The volume is very light for the moment, however.

Disclosed budget: $700,000 [Was listed as $250,000 when this was first posted and was increased at some point before 2013/5/8]
Promoter: Pond Research LLC aka Ken Williams’ Hard Asset Report

Paying party: Commodity United Ltd.

Shares outstanding: 42,952,500
Previous closing price: $2.00
Market capitalization: $85 million

polr

(click image to see full-sized)

 

Excerpt from disclaimer:

Commodity United Ltd. paid the publisher, Pond Research LLC, the sum of $700,000. This total production budget was applied towards costs associated with creating, printing and distributing this report. Excess funds remaining after production, if any, will be retained by the publisher as profit.

Hard Asset Report is a trademark of Pond Research LLC.

 

[Edit 2013-5-8]: I noticed a new landing page, at http://www.alaskanoilrush.com/landing/. Also, the disclaimer on both landing pages now discloses $700,000 in compensation. New disclaimer:

POLR_Disclaimer

 

 

Old disclaimer:

IMPORTANT NOTICE AND DISCLAIMER: This stock profile should be viewed as a paid advertisement. In order to enhance public awareness of Polar Petroleum and its securities through the distribution of this report, Commodity United Ltd. paid the publisher the sum of $250,000. This total production budget was applied towards costs associated with creating, printing and distributing this report. Excess funds remaining after production, if any, will be retained by the publisher as profit. This publication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. This publication, its publisher, and its editor do not purport to provide a complete analysis of any company’s financial position. The publisher and editor are not, and do not purport to be, broker-dealers or registered investment advisors. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Investing in securities is speculative and carries a high degree of risk. Past performance does not guarantee future results. This publication is based exclusively on information generally available to the public and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the publisher cannot guarantee the accuracy or completeness of the information. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured company and/or industry. The publisher 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 for the company’s products and services, the ultimate degree of success in drilling excursions, the company’s ability to fund its capital requirements in the near term and long term, pricing pressures, etc. Hard Asset Report is a trademarks of Commodity United Ltd. All other trademarks used in this publication are the property of their respective trademark holders. Pond Research, Hard Asset Report and Ken Williams are not affiliated, connected, or associated with, and are not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by Pond Research, Hard Asset Report or Ken Williams to any rights in any third-party trademarks.

PDF copy of old POLR pump page and new pump page.

[Edit 2013-5-13]: I found another new landing page with a higher compensation amount: https://www.hardassetreport.com/landing/

POLR_5132013

 

PDF of new landing page.

Disclaimer: [Edit 2013-5-13 -I am net long 40 shares of POLR. I may trade this at any time.] 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.

Snitches get riches: Inform on stock fraudsters to make a lot of money

One question I always get asked is: “How can I make money in penny stocks?” The answer I always give is that outside of becoming a stock promoter (which I obviously do not recommend), the easiest way to get rich in penny stocks is to steal money from stock promoters and the insiders who put together companies for the sole purpose of being promoted. The most successful of those individuals almost invariably have secret overseas bank and brokerage accounts that they use to sell their shares and avoid detection. Obviously, my recommendation to steal from them is not serious. However, there is a perfectly legal and ethical way to take their money: inform on them to the government. The methods they use to conceal their fraud require more people to know about their fraud. Each bank or brokerage employee that knows about an account being used to liquidate large positions in a pump and dump is a potential whistleblower. And with the SEC’s new whistleblower program, those individuals can be well compensated for informing the SEC about stock fraud.

The SEC has indicated that it is making good use of its new power to compensate whistleblowers:

  Within the Miami office, Bustillo continued, the enforcement and examinations programs work in close collaboration—a partnership that has given rise to “many of our most important cases.” In addition, the office also handles a number of cases based on TCR—tips, complaints, and referrals.

In gearing up for the launch of its whistleblower bounty program, the commission established a single, searchable database system of records for the tips, complaints, and referrals it receives about possible securities law violations. Bustillo explained that the new TCR system was intended to allow staff to “connect the dots” more quickly as information comes into the system. As such, “what looked like a very small fraud cases can quickly be identified as a much larger scheme.”

TCRs “have quickly become a great source of … cases for all of our regional offices,” and for headquarters, Bustillo said.

Similarly, the whistleblower program has become a great source of sound, actionable information that is allowing enforcement staff much more quickly to identify cases that might otherwise have gone undetected—cases in which the fraud “is of such a nature that unless somebody actually points it out to us, is very difficult to recognize.”

(The above is from the Bloomberg Newswire article “Suits Against Gatekeepers Likely In Microcap Arena, Bustillo Says,” by Phyllis Diamond. Read more here.

Perhaps more useful for informers than the SEC whistle-blower program is the IRS whistle-blower program. Most individuals who commit stock fraud will also commit tax fraud because they will not report their income in overseas accounts that they use to sell their shares in promoted companies. The IRS has more manpower and resources than the SEC and fines for tax fraud are much higher. Consequently, awards to whistle-blowers can be quite high. So I encourage anyone with evidence of hidden insider selling of shares in promoted companies to find an experienced tax whistle-blower lawyer and file a claim/complaint with the IRS.

A recent example of an IRS tax fraud case against penny stock insiders is the case against Stephen Kerr and Michael Quiel, who were recently convicted of selling millions of shares of SEFE in foreign accounts and not reporting the proceeds to the IRS.

From the April 12th Justice Department press release:

A jury convicted Stephen M. Kerr and Michael Quiel yesterday on federal tax charges stemming from their failure to disclose secret offshore bank accounts in Switzerland, the Justice Department and Internal Revenue Service (IRS) announced. Kerr and Quiel, prominent Phoenix businessmen, were each convicted of two counts of filing false individual income tax returns for 2007 and 2008. Kerr was also convicted of two counts of failing to file a Report of Foreign Bank and Financial Accounts (FBAR). San Diego attorney Christopher M. Rusch had previously pleaded guilty to conspiracy to defraud the government and failing to file an FBAR on Feb. 6, 2013.

According to the evidence presented at trial, Kerr and Quiel, with the assistance of Rusch and others, including Swiss nationals, established nominee foreign entities and corresponding bank accounts at UBS AG and Pictet & Cie to conceal Kerr and Quiel’s ownership and control of stock and income that were deposited into these accounts. Rusch testified at trial, admitting that he and others caused the sale of the shares of stock through the undeclared accounts. Kerr also hired Rusch to facilitate the domestic sale of 11.4 million shares of stock held in the name of a foreign entity controlled by Kerr and to transfer the proceeds from the sale of the stock to an undeclared foreign account at UBS AG to conceal that the money was income to Kerr that should have been reported on his tax returns.

For more information, see:

IRS whistle-blower website
SEC whistle-blower website

Disclaimer: I have no position in any stock mentioned above and no relationship with any parties mentioned above. I have never acted as a whistle-blower for either the IRS or SEC and I do not know anyone who has. 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.

SEC subpoenas Andrew Farmer and Iridium Capital in connection with Chimera (CHMR) investigation

Yesterday the SEC subpoenaed Andrew Farmer and Iridium Capital after they failed to provide documents requested by the SEC in its investigation of the pump and dump of Chimera Energy (Grey market: CHMR) and “whether the claims in Chimera’s press releases are materially false or misleading.” CHMR previously had its trading suspended by the SEC last October after Infitialis accused the company of lying in press releases.

CHMR Trading suspension
SEC Litigation release
Infitialis CHMR article part 1
Infitialis CHMR article part 2

The investigation of this alleged stock fraud seems to be proceeding more quickly than is normal for the SEC although CHMR’s alleged lies were blatant: the company said it had a join venture with Pemex and the head of Pemex investor relations denied having any knowledge of Chimera.

From yesterday’s litigation release:

The SEC’s application explains that beginning in July 2012, Chimera commenced a promotional campaign that caused a dramatic increase in the trading volume and price of its stock. The SEC is investigating, among other things, whether the claims in Chimera’s press releases are materially false or misleading. On October 25, 2012, the SEC temporarily suspended trading in the securities of Chimera because of questions concerning the accuracy and adequacy of publicly disseminated information about, among other things, Chimera’s business prospects and agreements.

As part of its investigation, the staff in the SEC’s Fort Worth Regional Office issued subpoenas to Farmer and Iridium in December 2012 seeking, among other things, materials related to their transactions in Chimera securities and to Chimera’s business. According to the SEC’s court papers, Farmer played an integral role in Chimera’s transition from a privately held to a publicly traded company. And, before Chimera’s securities became available for purchase to the public on the over-the-counter market, entities controlled by Farmer or for which Farmer acted as agent acquired millions of Chimera shares in private transactions, while Iridium, which Farmer also controlled, assisted in effectuating these transactions. According to the court papers, once Chimera’s promotional campaign was under way, entities controlled by Farmer sold to the public a substantial number of their privately obtained Chimera shares, generating hundreds of thousands, if not millions, of dollars in profits.

 

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.

Western Graphite (OTCBB: WSGP) pump and dump

Today online promotion pages went live for Western Graphite (OTCBB: WSGP). See http://wsgpreport.com and http://wsgpinfo.com

See Promotion Stock Secrets’ report on WSGP (that was just made publicly available today).

wsgp

Disclaimer (click to see full-size):wsgp_disclaimer

Disclosed budget: $1,813,286
Promoter: Cranwood International Inc. and Tobin Smith / Changewave, Inc dba NBT Communications

Paying party: Wiltshire Foundation

Shares outstanding: 58,000,000
Previous closing price: $0.78
Market capitalization: $45 million

Excerpt from disclaimer:

Cranwood International, Inc. has received or expects to receive a total production budget of $1,813,286 from Wiltshire Foundation for this advertising effort and will retain any amounts over and above the cost of production, copywriting services, list rental, online advertising, mailing and other distribution expenses, as a fee for its services

ChangeWave, Inc (dba NBT Communications) is paid twenty-five thousand dollars as an editorial fee from Cranwood International, Inc.

PDF copy of WSGP pump page.

[Edit 2013-4-30]: As of yesterday evening, Promotion Stock Secrets reported receiving a hard mailer. Complete scan (pdf).

[Edit 2013-5-7]: Over the last couple days I have received emails linking to a new landing page (and likely a different hard mailer to go along with it) by Wall Street Revelator. See http://wsgpnews.com/index.html The budget is the same and the paying party is the same.

PDF copy of Wall Street Revelator pump page.

 

Disclaimer: [Edit 2013-5-7 — I have no net position in WSGP, being 5500 short in one account and 5500 shares long in another account]. 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.

Stratex Oil & Gas Holdings (Pinksheets: STTX) pump and dump

Today people reported receiving hard mailers promoting Stratex Oil & Gas Holdings (Pinksheets: STTX). One Tim Sykes Challenge student was kind enough to photograph the front of the mailer and the disclaimer and send those to me.

Pump budget: $780,000
Stock Promoter: Linear Access Inc. & John Myers The Myers’ Letter
Paying party: Linear Access Inc.
Shares outstanding: 43,692,556
Previous closing price: $1.04
Current market cap: $45m

Excerpt from disclaimer:

JMTML has received a total amount of seven thousand five hundred dollars in cash compensation to assist in the writing of this advertisement

Linear Access Inc. paid seven hundred eighty thousand dollars to marketing vendors to pay for all the costs of creating and distributing this Advertisement [sic]

sttx_cover(click to enlarge)

 

sttx_disclaimer(click to enlarge)

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.

Petrosonic Energy (OTCBB: PSON) pump and dump: a new batch of hard mailers

Petrosonic Energy has been pumped by Tobin Smith of NBT Equities Research since last September. There have been three distinct waves of hard mailers sent out on the stock, as can be seen in the volume on the stock chart. I have been short PSON much of the time over the last six months and am short as I write this. Since the beginning of the pump a landing page has been online at http://disruptiveoiltech.com/

Pump budget: $3,000,000 (previously $2,500,000)

Stock Promoter: Beaumont Media (and Tobin Smith / NBT Equity Group / Changewave Inc.)

Paying party: Belmont Group Ltd.

Shares outstanding: 65,329,000

Previous closing price: $1.02

Current market cap: $66m

From the disclaimer on that page:

Beaumont Media LLC has received or expects to receive and manage a total production budget of two million five hundred thousand dollars from Belmont Group Ltd. for this online advertising effort and will retain any amounts over and above the cost of production, copywriting services, list rental, online advertising, mailing and other distribution expenses, as a fee for its services. Changewave, Inc (dba NBT Communications) is paid fifty thousand dollars as an editorial fee from Beaumont Media LLC.

 

pson

 

 

Scan of the front page of the hard mailer, courtesy of Peter Michaelson on the Silicon Investor Paid Mailer message board. According to Peter, the budget disclosed in this most recent mailing is $3.0 million.PSON 2013-4-5

 

Full disclaimer from the online landing page:

IMPORTANT NOTICE AND DISCLAIMER: NBT Special Research Report, a Changewave, Inc. dba NBT Communications (“NBT”) publication, 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 NBT or an offer or solicitation to buy or sell any security. Beaumont Media LLC has used outside research and writers using public information to create the advertisement coming from NBT about Petrosonic Energy Inc. Although the information contained in this advertisement is believed to be reliable, NBT and Beaumont Media LLC 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. The opinions expressed in this advertisement and special report are solely those of Tobin Smith, unless otherwise referenced. 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 Special Report and perform extensive due diligence on this or any other mentioned company. Beaumont Media LLC and NBT or affiliates are 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. Beaumont Media LLC has received or expects to receive and manage a total production budget of two million five hundred thousand dollars from Belmont Group Ltd. for this online advertising effort and will retain any amounts over and above the cost of production, copywriting services, list rental, online advertising, mailing and other distribution expenses, as a fee for its services. Changewave, Inc (dba NBT Communications) is paid fifty thousand dollars as an editorial fee from Beaumont Media LLC.

*More information can be received from Petrosonic Energy’s investor relations firm, or at Petrosonic Energy Inc.’s website Further, specific http://www.petrosonic.net information, filings and disclosures as well as general investor information about publicly traded companies like Petrosonic Energy Inc., 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, Petrosonic Energy Inc. 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.

PDF copy of pump website.

Disclaimer: I am short PSON and looking to short more. I may add to or close this position at any time and I will not update this disclaimer if my position changes (unless I update this blog post). 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.