Check Out These Penny Stock Spammers/Frauds Who Got Busted
Posted by Timothy Sykes on Tue 7th of Jul, 2009 08:00:08 AM
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Saw THIS article and THIS one and thought it somewhat relevant to what PennyStocking is all about–profiting off the sketchy and probly illegal behavior of stock promoters who do ANYTHING to increase their email list size & manipulate people into buying stocks that they are paid to promote, while they either take cash and/or shares, which they immediately sell into their pumps (hence the term pump & dump…learn people learn HERE)
It may sound basic, but you have no idea how difficult a concept this is for so many people to understand…when I tell them I short sell, or bet against, such schemes, they think it’s some kind of clever trick and I’m just as bad as the stock promoters/spammers!
Speaking of which: you silly little law officer children, busting spammers is fine, it’s good to abide by the law, but when you give headlines to these criminals, saying how much they made, you create 10 more wannabe spammers…learn how terrorist networks grow and understand why you’re going after these guys all wrong!
Check out the articles below:
Detroit Spammer Pleads Guilty To Stock Fraud
Alan Ralsky, a notorious spammer, pleaded guilty Monday in federal court in Detroit for his role in a stock fraud case involving spam messages that promoted Chinese “penny” stocks.
Ralsky and four other people pleaded guilty, joining three others who pleaded guilty earlier, the U.S. Department of Justice announced.
According to court records, from January 2004 through September 2005, Ralsky and others engaged in a related set of conspiracies designed to use spam emails to manipulate thinly traded stocks and profit by trading in those stocks once their share prices increased after recipients of the spam emails traded in the stocks being promoted.
“Alan Ralsky was at one time the world’s most notorious illegal spammer,” said U.S. Attorney Terrence Berg. “Today Ralsky, his son-in-law Scott Bradley, and three of their co-conspirators stand convicted for their roles in running an international spamming operation that sent billions of illegal e-mail advertisements to pump up Chinese ‘penny’ stocks and then reap profits by causing trades in these same stocks while others bought at the inflated prices.
“Using the Internet to manipulate the stock market through spam e-mail campaigns is a serious crime, and this case serves notice that federal law enforcement has the both the capability and the will to successfully investigate, prosecute and punish such cybercrimes.”
Ralsky, 64, of West Bloomfield, Mich., pleaded guilty to commit wire fraud, mail fraud and to violate the CAN-SPAM Act. Under the terms of his plea agreement, Ralsky acknowledges he is facing up to 87 months in prison and a $1 million fine under federal sentencing guidelines.
…and this guy who made much more $ before his bust:
A federal judge found Jeffrey G. Turino in contempt and ordered him to pay almost $10 million because of illicit gains made in penny-stock offerings, the Securities and Exchange Commission said Monday.
U.S. District Judge Elizabeth A. Kovachevich in Florida also permanently banned Turino from participating in any penny-stock offering.
She had previously barred him from participating in penny-stock offerings in December 2003 in connection with another case. In that case, Turino and an associate were accused of committing securities fraud by making false and misleading statements about the business operations of a penny stock company they controlled.
Turino settled that case by paying a $60,000 civil penalty and agreeing to be barred from the business for five years.
In the latest case, the SEC accused Turino of violating the five-year ban by spearheading the reverse merger in 2004 of a penny-stock issuer and arranging a penny-stock offering for it. The agency said he also used two people he knew to participate in penny-stock offerings by four other issuers from 2006 through 2008, and received about $9.6 million by selling Penny Stocks he obtained through those offerings.
He must pay the $9.6 million in ill-gotten gains, and $350,000 in interest.
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Total: $98,094 (681%)
