One of my followers, Dan, contributed the following quote that he found on the Internet:
… A private citizen has filed a civil action for violations of California Business and Professions Codes 17529.5 (Anti-Spam) and the California Legal Remedies Act against IDO Security, Inc., (OTCBB:IDOI) (“IDOI”), Empire Post Media, Inc (OTCBB:EMPM) (“EMPIRE”) and Mustang Alliances, Inc. (OTCBB:MSTG), as well as various officers and shareholders of those companies and others involved in a scheme allegedly to disseminate spam emails in order to artificially create a marketplace for the stocks of those companies at artificially high prices. The Complaint was filed by George Sharp in the San Diego County Division of California Superior Court (Case No. 37-2012-00101057-CU-NP-CTL) on July 23, 2012.
In his complaint, Mr. Sharp states that the Defendants deliberately hired offshore promoters and/or advertisers to disseminate unsolicited emails under the identities Stock Castle, Wall Street Penny Stock Advisors, Hottest Penny Stocks, Magic Penny Stocks, Obscure Stocks, and Ultimate Penny Stock, imploring him to buy IDOI, EMPIRE and MUSTANG stock; and, in spite of multiple attempts by the Plaintiff to opt out of these emails, the spam continued to be sent to his inbox. Under BPC Section 17529.5, violators are subject to pay damages of up to $1,000 for each spam email to each recipient. Mr. Sharp is also seeking a preliminary injunction against the defendants in order to prevent the practice from continuing.
Mr. Sharp, expressed concern for investors in IDO Security, Inc. stock, an issue that is currently undergoing such a promotion campaigns, seemingly to divest insiders of stock in what is commonly known as a Pump and Dump campaign. As virtually all of IDOI stock was held by a few individuals, prior to the commencement of the promotions, Mr. Sharp fears that investors in that stock will see the kind of harsh losses typically realized as a result of such campaigns, and as experienced by investors in EMPIRE and MUSTANG shares.
Mr. Sharp commented, “I have no idea how these spammers came to add my email addresses to their lists, but even after attempting to opt out through their Unsubscribe links, the emails kept coming. It just goes to show the lengths that some unscrupulous promoters will go in order to aid their clients’ intentions to divest themselves of stock.”
Mr. Sharp holds no interest in any of the stocks mentioned. Mr. Sharp invites those who have received unwanted emails from these alleged spammers to contact him. Updates to this litigation may be viewed by following Mr. Sharp’s tweets at http://www.twitter.com/goniffs. A copy of the complaint is available upon request …
Thank you Dan for the information and thank you for your continuing comments.
It is doubtful that the law suit will accomplish anything other than some temporary exposure on the Internet for Mr. Sharp and his attorneys. Since even the SEC cannot, apparently, bring any sustainable case against our “John Bell”, it seems unlikely that the case will even come into the consciousness of “John Bell.” Even if it did, he is a clever enough to evade any actions by any individual.
If I may, perhaps, pontificate a bit on this matter. The stock market, in general, and the penny stock market, in particular, are very dangerous places. These markets are not savings accounts at your local bank, which are insured by the Federal Depositors Insurance Corporation (FDIC). In the case that money is invested in the stock market, the investor should understand the very real risk that he, or she, may lose all of that money. It is my opinion that before any person is allowed to invest in the stock market, they must the following 100 times every morning before having breakfast: STOCKS are RISKY. That way, the concept of risk, that is inherent in the markets, becomes part of the mental processes of the person.
A prudent investor will always consider strategies for reducing, or possibly, eliminating the risk of loss, whether trivial or substantial. Towards understanding the risk involved in the purchase of any stock, including penny stocks, it is a trivial matter to obtain the financial documents that each company must with the SEC. These can be obtained in original form on the EDGAR website, which is found at the website for the Securities and Exchange Commission. This is a free website and nearly all of the information necessary to evaluate the risks associated with the purchase of shares in any company can be found there. A distilled version of these documents can be located at the “Key Statistics” section of the Yahoo Finance website for any particular company that an investor might want to consider. The major shareholders are also to be found on the Yahoo Finance Website. Here, I have provided the link to the website containing the identity and shareholding of the major shareholders of Alcoa, Inc. The take-away message is that more information is now available to the individual investor about any given company than was available in the entire history of modern civilization. There is no excuse for an investor to buy even a single share of any company without first obtaining all of the available information about that company and carefully studying and analysing that information.
Today, the threnody is “get rich by `beating the market’,” and penny stock strategies can certainly be a valuable tool in doing so. However, buying penny stocks without first understanding the nature of penny stock SCAMS and understanding the players involved as will as the companies that are for sale is like walking through a minefield of Bouncing Bettys wearing a blindfold. At some point you are guaranteed of catastrophic injury.
Also, in modern society, we want to be able to engage in extremely risky behaviour and then run to the regulatory agencies, state law enforcement agencies, or the courts when things go seriously wrong. What ever happened to “personal responsibility”? What ever happened to a society that said: I goofed up and I must pay. Sure, spammers exist: filter them out using your e-mail filter. Scammers exist, always have, always will: keep your purse tucked into your pocket. If you make ill advised mistakes whilst knowingly engaging in risky behaviour and then lose your money: then expect to suffer the consequences. That is called taking “personal responsibility” for your own actions.
I hope this helps.
Nathan A. Busch