January 9, 2013: Today's Pump & Dump campaign on Endeavor Power Corp (EDVP) is likely to hit a few snags if any of the penny players do any sort of research whatsoever.
Last year, EDVP was identified by the SEC as one of the schemes promoted by a tout sheet called the OTC Special Situations Report, whose publishers were charged with making fraudulent statements. The SEC claims that National Financial issued overly optimistic reports about four stocks, including EDVP, making baseless projections about the company's performance.
According to the complaint, the self-proclaimed, “America’s Leading Micro-Cap Stock Picker,” promotes penny stocks in this publication on behalf of clients in order to increase the price per share and/or volume of trading in the market for the securities of penny stock companies.
The SEC sought disgorgement of $600,000 in ill-gotten gains, plus interest, for a total of $644,081, citing that the publisher's conduct, "is sufficiently egregious to warrant both the financial penalty and a permanent injunction against future violations."