ECRY attempts to circumvent a trading suspension with an abrupt end to the Pump & Dump campaign and a pool of crocodile tears
December 18, 2014: It has now become clear that the much anticipated resumption of StockTips' Pump & Dump campaign on Ecrypt Technology's (ECRY) is not forthcoming. In case you missed it, the scam was given the "Whoa Nelly" concurrently with a company issued press release last Friday. The announcement, an obvious desperate attempt to cool an ongoing interrogation by the regulators, pretty much disavowed any knowledge or connection with StockTips' Pump & dump campaign. It is not a coincidence that the end of the ill-fated promotion coincided with the press release. If the regulators come to the same conclusion, then ECRY may not have done enough to prevent a coming trading suspension.
The implied claims of ignorance and left-handed expression of concern are nothing more than big fat lies.
ECRY's intent to deceive was made clear four days after the promotion began, when the company issued a November 25, 2014 press release inferring that management had only taken notice of the share volume and price increase because of an inquiry made by the British Columbia Securities Commission (BCSC) and that it was at that time, that the company came to understand that a promotion was underway.
The Company has been advised by the British Columbia Securities Commission ("BCSC") that the Company is the subject of a promotional campaign by at least one newsletter writer making unsupported, highly promotional, statements about the Company's future share price (the "Promotion").At this point, you know that anything that the company is going to say on the matter is a lie. Any investor who believes that management isn't instantly aware of a sudden increase in share price and trading volume, especially after an extended period of near dormancy, needs to give their head a shake.
But then the attempt to insult the reader's intelligence goes on.
The promotional campaign coincides with and appears to have effected a significant increase in the share price and trading volume of the Company's shares beginning Friday November 21, 2014.On November 21, Day One of the Pump & Dump campaign, 29 million+ shares traded. Are we expected to believe that nobody noticed or that nobody thought it was unusual? "Appears to have effected"???? Are they kidding?
Taking a one day hiatus from pumping in sympathy with that press release, StockTips.com was at it again the very next day. Buoyed by a plethora of the obligatory wash trades and accompanied by the frenzied buying of gullible coattailers, shares not only recovered from a two day massacre, but reached a ridiculous high of 59 cents just a week and a half later.
|ECRY Chart Over the Course of the Recent Pump & Dump Campaign|
Naturally, the SEC, FINRA and other watchdogs made inquires throughout the pump. In the first press release, ECRY had only acknowledged the concerns of the BCSC. But the truth is that the SEC had also already expressed its frustration with the pump and FINRA was making calls even before that. Those two regulators carry a lot more weight than the BCSC on the OTC markets, which is why ECRY never publicly acknowledged their inquiries until it was down to crunch time. That was last Friday, when, with the heat turned up high, the decision to end the promotion was made. It is not just a coincidence that management issued its second press release on the matter with just 30 minutes left in the promotion, .
The Company has not, directly or indirectly (including payment of a third party), been involved with the creation or distribution of the spam or promotional emails related to Ecrypt and its securities, and based upon information available to the Company after reasonable investigation, the Company believes that none of its officers, directors or controlling shareholders, have personally been directly or indirectly involved. Additionally, based upon information available to the Company after reasonable investigation, the Company believes that none of its officers, directors or controlling shareholders, have sold or purchased any of the Company's securities since November 21, 2014, the first known instance of the promotional campaign.Well it is not difficult to believe that the company or its officer and directors did not directly sell stock, an event that would have been easily traceable. But to say that they were not indirectly involved is a lie. It would be impossible to conduct an Pump & Dump campaign of this magnitude without the sympathy of company insiders. Financiers, non-controlling shareholders, could and did, sell shares at will, almost certainly with benefits, perhaps kickbacks to the company and/or its directors.
What was lost by most was the fact that this was not the first Pump & Dump campaign executed on ECRY shares. Three years earlier, a late 2011 campaign invoked the services of several touts, among them the dual alter egos of Darth Trader and Penny Stock Psycho. Three million dollars was lost by the street as a result of that shorter campaign, as shares hit a high of a $1.06 before insta-dumping to 20 cents.
|ECRY Pump Piece From December 2011|
|ECRY Chart Over the Course of the 2011 Pump & Dump Campaign|
In the three years between Pump & Dump campaigns, ECRY has accomplished exactly nothing, most recently listing a mere $31K in assets, primarily in cash, and a grand total of less than two grand in revenues over the course of its life. And yet the lemmings saw the company worthy of investments which ended up creating an estimated $6 million in losses to the street. Assets and revenues are not the key ingredients for a successful Pump & Dump campaign. Con artists and suckers are all that are required. And ECRY was most definitely integral in the con. Press releases which express genuine concern for shareholder security look like this. And they are certainly not issued 30 minutes before the scheme ends.
Following the Pingify (PGFY) debacle and unprecedented ECRY press releases, it is becoming evident that the authorities are taking a hard look at StockTips promotions with an eye towards putting them out of business much like Awesome Penny Stocks and Eric Cusimano's Best Damn Penny Stocks before it. We have reason to believe that the identity of the perpetrators of these frauds and the fictitious Mike Statler are about to be discovered and much like the incarcerated Cusimano and Sandy Winnick and the fugitives John Babikian and Jim Can, someone will soon be called onto the carpet.