the OTC .today

Monday, September 12, 2011
Today's PUMPs & dumpS

We Be Jammin!

Time for us to give out "I told you so"s again, following an announcement that the SEC is investigating Jammin' Java Corp (JAMN) for a spring season Pump & Dump which we were screaming about as far back as April. We took tons of criticism for reporting on the obvious scheme that resulted in many making ill gotten profits while many more collectively lost 10s of millions of dollars.

According to a Bloomberg report, the SEC probe was revealed by the filing of lawsuits intended to quash subpoenas issued in conjunction with the investigation.  The SEC does not generally discuss their investigations, so such revelations could only come from court documents or those working closely with the SEC.

Obviously, we are not surprised by the SEC investigation, as we called it back in April and we believe similar probes are in the works for more recent Pump & Dump subjects LSTG and POTG, amongst others.

Shares of Canadian Internet developer Fresh Traffic Group (FTGC), are the subject of an aggressive SPAM email campaign.  As well as being illegal, this is an especially despicable form of Pump & Dump, as the promoters are not identified and the scam targets those who don't even expect to receive emails pimping stocks as they would had they subscribed to a tout's email list.   In the last 24 hours, we've received 19 spam emails from phoney and temporary email addresses, which are deleted as quickly as they are created.

Habitual Pump & Dump insider, William Lieberman, is at it again, this time with Fox Petroleum (FXPT). Lieberman's past escapades include Trilliant Exploration Corp (TTXP) which the FXPT website refers to as a gold mining operation.  It's not any sort of operation and is as dormant as they come.  Less dormant, but just as scheme oriented, is Mammoth Energy (MMTE), another Lieberman undertaking that has resulted in significant losses and is reportedly involved in litigation.  Needless to say, we struggle to find any sign of success within the multiple public companies across the energy, gold and lithium exploration industries that Lieberman miraculously has time to manage.

The regulators continued their punishment of transfer agent, National Stock Transfer, and its principals for violations of federal securities laws.  Two weeks ago, the SEC obtained injunctions against NST while creditors locked the principals out of their offices.  On Friday, the DTC placed a chill order on those stocks serviced by NST and placed a block on having DTC services available to them simply by changing transfer agents.  The most active of the effected stocks is Emax Holdings Corp. (EMXC).

On Friday, the SEC issued temporary trading suspensions on AEGX, ACII, AMNT, BSTR, CREBQ and GRPK citing a lack of current and accurate information.  These types of suspensions are issued over renewable 10 day terms until the required information is made available or the SEC deems the suspension permanent.

On Thursday, in his Jobs Speech, President Obama called for the cutting of red tape for those companies wanting to go public.  Obviously, we think that it is already too easy for scams to go public through the reverse merger process and we hope that along with the easing, stricter enforcement of the regulations and accountability are forthcoming. In support of our position, we cite the June 11, 2011 statement by the Director of the SEC's Office of Investor Education and Advocacy:
"Given the potential risks, investors should be especially careful when considering investing in the stock of reverse merger companies,”
To that statement, we'd like to add the sentiment that investors should especially avoid those companies which are the subject of aggressive marketing campaigns conducted by paid promoters seemingly for the purpose of creating a market for insider stock.  We believe that until the SEC increases their enforcement, investigation and prosecution efforts, schemes like that of Jammin' Java are going to continue to injure those who are easy prey for "get rich quick" cons.

Since Friday's close: 

Illegal SPAM emails has been reported promoting FTGC in conjunction with a new Pump & Dump campaign. 

PennyStockExplosion.com and at least 1 other paid tout have been promoting FXPT in conjunction with a new Pump & Dump campaign. 

PennyStockLocks.com has been promoting CGUD in conjunction with a new Pump & Dump campaign. 

QualityStocks.net has been promoting AAGC in conjunction with a new Pump & Dump campaign. 

HotShotStocks.com has been promoting BYRG in conjunction with a new Pump & Dump campaign. 

PennyPayDay.com has been promoting ONTC in conjunction with an ongoing Pump & Dump campaign. 

QualityOtc.com and at least 3 other paid touts have been promoting SGAE in conjunction with an ongoing Pump & Dump campaign. 

ElitePennyStock.com and at least 1 other paid tout have been promoting EVGI in conjunction with an ongoing Pump & Dump campaign. 

TopStockAnalysts.com and at least 3 other paid touts have been promoting LSTG in conjunction with an ongoing Pump & Dump campaign. 

 XtremePicks.com and at least 1 other tout have been promoting BRYN in conjunction with an ongoing Pump & Dump campaign. 

StockCastle.com and at least 1 other paid tout have been promoting NYXO in conjunction with an ongoing Pump & Dump campaign. 

BeaconEquity.com has been promoting HWIC in conjunction with an ongoing Pump & Dump campaign.