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Why ORRP Is Just Another Penny Stock Scam

With a solid resume of pump-and-dump schemes behind him, Craig Steven Alford moves on to Oroplata Resources.  Look out below!

August 22, 2016 (update): ORRP filed its new Form 10-Q today and things have gotten worse. The number of shares outstanding has increased 41.5% over the previous quarterly report to 56,636,943 shares. This is clearly an attempt to replace insider shares which were dumped during the ongoing pump and dump campaign. The scheme becomes clearer when the reader of the financials realizes that ORRP received nothing for those shares. Assets are now reported be an absolute zero.

July 24, 2016: One of the more furiously pumped tickers over the last month has been that of Oroplata Resources (ORRP) another share selling scheme pretending to be involved in lithium mining. That sector is currently in vogue among penny stock fraud artists thanks to the need for lithium batteries in cars manufactured by Tesla. In fact, Testla's name has been shamelessly bandied about in ORRP pump pieces in hopes that future bag holders might perceive a connection between the two companies, which of course, does not exist.

The classification of  ORRP as a scam was valid as soon as CEO Craig Steven Alford's named was attached to the company. Alford has been linked to many despicable penny stock frauds over the past several years. His name was also revealed in the recent Panama Papers scandal as one of those who held an offshore account, presumably in some sort of effort to hide ill-gotten booty.

Within days of the June 3rd filing which announced Alford's takeover of the previously dormant company and the June 1st announcement of ORRP's acquisition of a supposed lithium property in Nevada, a landing page had been created with a pump piece that would soon be linked in emails distributed to thousands of Inboxes. Two weeks after the announcement of Alford's arrival, the email promotions began in earnest. To say that the ongoing pump and dump campaign was perceived far before Alford's announcement as boss scammer is an understatement.

Almost every tout in the book has been retained to pump ORRP shares and you can bet that a second round of emails will be coming from these soulless pimps who have forever shown that they have no qualm about exposing their subscriber list to obvious scams.  Since June 20th, no less than 107 separate emails from dozens of newsletters--all of whom have admitted to having been compensated to a total of hundreds of thousands of dollars--have been disseminated in support of the scheme. Real companies do not engage in stock promotions that are so clearly designed to sell stock.

As with all well thought out and extended pump-and-dump campaigns, ORRP's share price has not been allowed to run off so that potential marks can believe they have not missed the boat.  Indeed, the pump pieces implore that shares be purchased under $2.50 while they can (supplies limited to as many shares as can be dumped). Those divesting themselves of stock have been careful to feed the mice in doses that minimize a run up in share price, but also do not cause a steep decline.  In the meantime, those patiently holding shares will inevitably wake up one morning to find their holdings have lost significant value.

ORRP Chart - June 20 - July 22, 2016

As previously stated, Alford's history with pump-and-dump-schemes is quite extensive.  Any OTC issuer that has had his name attached to it has been the subject of such frauds and has left a wake of bag holders behind. Alford is currently a director of Envoy Group (ENVV), as issuer that was the subject of its first pump-and-dump campaign over a couple of days this past May. As only a relatively small amount of stock was sold during that campaign, it is easy to fathom that additional efforts to promote the stock are forthcoming.

ENVV Chart May 1 - July 22, 2016

Verde Science (VRCI), which was also the subject of pump-and-dump campaigns under its previous incarnation as Rango Energy (RAGO), is another Alford associated fraud that devastated those that fell prey to the scheme. Having rewarded pigeons that bought into the late 2014 promotion with a one for 280 reverse split, the pump began anew in the spring of 2015 and new suckers quickly saw the share price drop by 85%. VRCI is now also very delinquent with its financials and OTCmarkets has downgraded the stock to "Pink Sheets No Information" and tagged it with a Stop Sign icon, a warning to potential investors to stay away.

VRCI Chart - June 2, 2014 - July 22, 2016

Alford is a former officer of Handeni Gold (HNDI) when it was known as Douglas Lake Minerals (DLKM). During 2012, Alford sued the company for breach of an employment agreement that called for him to be paid an overly generous monthly salary of $12,500. As of the company's latest filing, the case remains in limbo after 4 years, as there is no indication of disposal of the case. Alford apparently retained stock when he departed HNDI and the company underwent several promotions from 2013 - 2015 with predictable results.  The stock has recently been recapitalized through a one for 150 reverse split, likely in preparation for new schemes.

HNDI Chart October 1, 2013 - July 22, 2016

As of March 31, 2016, ORRP had nothing save for $8,500 in cash, but that hasn't stopped buyers from supporting a $73 million market cap. With no assets listed, even if there were lithium to be found on the Nevada property, there is no explanation offered as to how exploration or production might be funded. But then nobody in management really expects to conduct any such work and word of this project will evaporate just as soon as there is no more stock for insiders to divest. Only the most gullible or the most adamant of pumpers will argue that ORRP will act any differently or serve any purpose other than as other Alford affiliated companies have acted or served.

So who are the ORRP sellers? Well one would have to imagine that Alford is benefiting in some way, but whether he is a direct seller or benefiting through nominees is unknown. What is interesting is that 15 million shares were sold through the 2013 S-1 registration statement, all by then sole officer and director, Hilario Santos Sosa. Those shares were purportedly sold for $.003/share to unnamed buyers. That $45,000 transaction is now worth $8,235,000 thanks to those who hope to make just a few dollars on the coattails of this multi million dollar fraud.