SEC busts PennyStockChaser as a fraud!
Dear Traders, We are sure that everyone has heard of Penny Stock Chaser, one of the biggest penny stock newsletters on the face of the Earth – or at least they used to be. Today the U.S. Securities and Exchange Commission put a freeze on all of PSC`s assetts and their companies. Penny Stock Chaser was at the top of the top last year when they began their touting and pumping of stocks telling their members to “Buy Buy Buy”, but they were in fact selling right into their members and dumping shares on the people that they were supposed to be looking out for! Exactly how much was the damage They pumped up $2,400,000 ($2.4 million) worth of stocks and dumped them right into their own members, a practice known as scalping.
This is a big blow to fraudsters that try to move in to penny stock newsletter publishing to make a quick dollar. This behavior is not only unacceptable, but it is completely illegal! Here at AcePennyStock`s we take a completely open and transparent approach to penny stocks and always make sure to keep our members in the know! Not only do we put a lot of work into selecting our picks, but we also work even harder after our picks are released to make sure that our members are safe. We have alerted our members when levels get to dangerous levels approaching a fall through resistance and not many other newsletters do anything similar. As we scour the OTCBB and Pinksheet markets we always work hard to bring you winning penny stocks and this is why we are one of the premier penny stock newsletters out today.
Here is an excerpt from the press release from the SEC:
“According to the SEC`s complaint, the defendants profited by selling penny stocks at or around the same time that they were touting them on www.pennystockchaser.com. The website invites investors to sign up for daily stock alerts through email, text messages, Facebook and Twitter.
The SEC alleges that since at least April 2009, Carol McKeown and Daniel F. Ryan, a couple residing in Montreal, Canada, have touted U.S. microcap companies. According to the SEC`s complaint, McKeown and Ryan received millions of shares of touted companies through their two corporations, defendants Downshire Capital Inc., and Meadow Vista Financial Corp., as compensation for their touting.
McKeown and Ryan sold the shares on the open market while PennyStockChaser simultaneously predicted massive price increases for the issuers, a practice known as “scalping.” Here are some of the stocks that PennyStockChaser pumped up over the past year:
The SEC complaint outlines six specific companies that Penny Chaser touted fraudulently:
* Converge Global, a Utah-based real estate company, which the two touted at least four times, gaining $602,000 in net proceeds; * Biocentric Energy Holdings, a Florida-based green-tech company, whose stock movements netted the two $569,000 in net proceeds; * Bluewave Group, a Nevada-based multimedia company, whose stock garnered them $184,000 in net proceeds; * Avro Energy, a Nevada-based oil company, which produced $16,000 in net proceeds; * Atlantic Wind & Solar, a West Virgina-based solar energy company, which garnered $780,600 in net proceeds; * MSE-Enviro-Tech, a Delaware-based fire suppressant maker, whose stock gained the two $240,000 in net proceeds.
We are extremely happy to see the the U.S. Government takes fraud in the penny stock market seriously and we are even more pleased to see PennyStockChaser face punishment for outright stealing their members money. We hope that they receive the most severe punishment possible to teach others that stealing is not correct and scalping is no different.
Your Friends, AcePennyStocks Staff 909 3rd Avenue, New York, New York 10022 To