The SEC alleges that the four promoters bought inexpensive shares of thinly traded penny stock companies on the open market and conducted pre-arranged, manipulative matched orders and wash trades to create the illusion of an active market in these stocks. They then sold their shares in coordination with aggressive promotional campaigns that urged investors to buy the stocks because the prices were on the verge of rising substantially. However, these companies had little to no business operations at the time. The promoters reaped more than $2.5 million in illegal profits through their schemes.
Two of the companies manipulated in this case – GrowLife Inc. (OTC: PHOT) and Hemp Inc. (OTC: HELP) – claim to be related to the #$%$ industry. The SEC has issued an investor alert warning about possible scams involving marijuana-related investments, noting that fraudsters often exploit the latest growth industries to lure investors into stock manipulation schemes. Other schemes by these four promoters involved an oil-and-gas company – Riverdale Oil and Gas Corporation – and three other microcap stocks, ISM International, Allied Products Corp, and Aden Solutions.
The SEC was able to unearth the schemes through the work of its recently created Microcap Fraud Task Force.
“Our Microcap Fraud Task Force is taking direct aim at abusive practices and serial violators within the microcap markets like these four promoters seeking to exploit retail investors for personal gain,” said Michael Paley, co-chair of the SEC’s Microcap Fraud Task Force. “In this case, we meticulously reviewed trading records and developed the evidence necessary to connect these four promoters and their coordinated trading efforts.”
I'm telling you, like some off the strike force pump teams that hit this board in waves......orchestrated manipulation of these pennys....sometimes the best you can do is see it for what it is and play it
i agree...you know how many thousands of traders are accesseries to those four in the otc markets? they all knew it was happening and just rode on those four's coat tails... the interesting thing is congress just cut FDA and SEC budgets where they target MMJ companies...so SEC is gonna have some explaining to do given they now have a new task force and the first pop is in mmj sector... gosh, where were they when I bought SEFE a few years ago; literally I bought HOT AIR...a company saying they could float hot air balloons and capture electricity in the atmospheric static and then run it to the ground through a tether....
Sentiment: Strong Buy
The four charged are from grow life inc and hemp inc nothing to do with us except for all you short manipulators beware the SEC will get you . Yiu hear me me chubbs your next bud.
Sentiment: Strong Buy