May 9, 2016: For the second time in a row, the SEC has put the "Whoa Nelly" on an Elite Penny Stock/ Finest Penny Stocks pump and dump scheme by suspending trading in shares of Midwest Oil and Gas, Inc. (MWOG). A similar suspension was enforced on the shares of Broke Out, Inc. (BRKO) in March. Both MWOG and BRKO were suspended as their respective promotions were only into its second week. Elite Penny Stock/Finest Penny Stocks generally promote an issuer for at least 4 weeks and often longer.
» Related: The SEC Just Halted My Stock! Now What?
In its suspension notice, the SEC cited "recent,
unusual and unexplained market activity in the company’s stock taking place during a
suspicious promotional campaign" as the reason for its Draconian action. Of course if the SEC really chose to do its job and exercise its authority under this reasoning, there would be very few issues trading on the OTCmarkets platform. It would not be unreasonable to suspect that further action is forthcoming against the MWOG pump and dump perpetrators.
MWOG did not see the fervent action that previous pump and dumps by these same perpetrators did. That is likely due to the concern created by the BRKO suspension which many correctly assumed to be a foreshadowing of a coming MWOG halt. Many traders claimed to be day trading the stock, unwilling to hold it overnight in fear that they would wake up to find that their holdings were largely wiped out by regulator actions. This fear kept daily closing prices from showing significant gains, giving the appearance of weak interest.
Like BRKO, MWOG is now doomed to be relegated to the grey sheets once the 10 day suspension expires and no market makers will be participating in what is sure to be dwindling trading once longs fulfill the requirements of any short participants.
Many suspect that this is the end for Elite Penny Stock/Finest Penny Stocks, widely believed to be run by those Awesome Penny Stocks partners that are on the lam from the law. Before its demise and the indictments of many of its partners, several subjects of Awesome Penny Stocks promotions were similarly suspended by the SEC, lending credence to the belief that new indictments are imminent in relation to the copycat pump and dump schemes.
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