I believe we could see a big Basher bust in the near future. BAshing a stock down for gain is extremely popular and probably more profitable with lower risk than the P&D. Here is an exerpt from a speech by an this is known but nothing is being done. Look at our markets...
4/23/99 - Canada: Cyber-cops Tackle The Bad Guys Online - Internet Brings New Brand Of Fraud To Securities Business.
infowar.com
Our experience patrolling the Internet leads us to
conclude that the scams taking place online are the same
basic scams that have long plagued our markets. They
mainly break down into three categories. The first is
sham offerings. Here, con artists create fancy web sites
and use mass e-mails, or "spam," to pitch securities in
offerings that either do not exist or are misleading.
These scams are often exotic. For example, we have seen
interests pitched in eel farms, coconut plantations, and,
my personal favorite, projects to explore near earth
asteroids.
The second category of Internet fraud is market
manipulation _ most often the "pump and dump" scheme.
Here, fraudsters circulate widely false and misleading
information to drive up a stock's price, then sell their
shares at the inflated price. When the scheme is
complete, the share price normally collapses. They work
the other way, too _ a practice known as the
"cybersmear." Often perpetrated by short sellers, this
fraud is intended to driven down a stock price on the
basis of false information. These scams routinely
involve "microcap" stocks -- which are low-priced thinly
traded securities. In conducting these scams, the
Internet has served as the modern day "boiler room"
replacing the traditional army of salespersons working
the phones with scripts in hand.
Finally, we have witnessed illegal touting. This
occurs when promoters are paid to make positive
statements about a company without fully disclosing that
they have been paid to do so. The wealth of information
available over the Internet aids investors only to the
extent it is credible and reliable. If the information
is simply "bought and paid for," investors have a right
to know.
When the SEC decides to check the blue sheets of a crashed stock hangin people they will probably discover someone shorted the fire out it on for gain. 144, Convertible Debenture and Convertible Preferred are notorious for this considering most cybersmears are expanded beyond the realm of actual truth. 90% innuendo and 10% fact. Mazing how the bashers, FUDs think they are going to be able to get away with it.
Sooner or later the SEc is going to make a bust and it will probably gain them more kudos than any P&D. Especially since the scammers realize that P&D will get nailed. Why play the hardship of upward when it is so much easier and less risky for more gains to play the downside?
They have a mass collection of cards they can play to get sells.
P2bAAAT & DSAS |
