December 10, 2016: Southern Home Medical, Inc. (SHOM) a long time share selling scheme designed to defraud, has employed a new way of deceiving the public, straying from the traditional pump and dump method of engaging promoters to create temporary hype in their stock. Under new CEO, George Chang, SHOM, has taken to the tactic of lying in press releases. And traders have paid dearly for it.
» Related: Southern Home Medical Equipment (SHOM) Sells Stock and Little Else
But the jig was up on Friday, after SHOM was forced to issue a follow-up press release, disavowing the claims it had made a week earlier. According to that press release, Coca Cola East Japan "requested" a clarification. What most likely had happened is that SHOM received a Cease and Desist letter. The release goes on to state that, "The contract and subsequent order was not done directly between SHOM and Coca-Cola East Japan but enacted by an agent who was purchasing product for Coca-Cola East Japan."; and, "We are making this clarification because we did not sign the contract directly with Coca Cola East Japan but we continue working with agents." The latter admission should be damning for SHOM. It confirms that the December 1st press release, which claimed that the order came from Coca Cola, was deliberately misleading. Chang had to know that the order, if it actually exists, did not come from Coca Cola East Japan, because the contract did not have "Coca Cola" anywhere on it. The initial press release is purely and simply, FRAUD.
We are issuing a trading suspension watch for shares of SHOM.*
|SHOM Chart - December 1 - 8, 2016|
|Coca Cola East Japan Press Release|
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SHOM's fraudulent press release prompted Coca Cola East Japan to issue its own statement denying any relationship.
This latest SHOM scam is reminiscent of similar scheme employed by DNA Brands, Inc. (DNAX), a now dormant pump and dump subject. During the summer of 2014, DNAX also invoked the Coca Cola name in a scam designed to defraud the public. In that scheme, bottler Trenton Coca Cola was reported to have agreed to distribute the DNAX line of energy drinks. The next day, DNAX was forced to retract that claim by the Coca Cola Company itself and of course millions of dollars of investor money instantly evaporated.
» Related: DNAX: Things Don't Go Better With Coke
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