...As you will see, the news articles don't mention Bruss or FSS. This doesn't mean they're an honest outfit, but there doesn't seem to be an SEC action against FSS based on their EOSC involvement. ...
Though it doesn't mention EOSC specifically, the following may be of interest:
SEC Charges 44 Stock Promoters in First Internet Securities Fraud Sweep
Purveyors of Fraudulent Spam, Online Newsletters, Message Board Postings, and Websites Caught
... Among the schemes in today's sweep, the SEC alleges a wide range of Internet-related securities fraud. Below are a few highlights. An Internet newsletter called The Future Superstock ("FSS"), written by Jeffrey C. Bruss of West Chicago, Illinois, recommended to FSS's more than 100,000 subscribers and to visitors to the newsletter's Web site the purchase of approximately 25 Microcap stocks predicted to double or triple in the months following dissemination of the recommendations. In making these recommendations, FSS: (1) failed to adequately disclose more than $1.6 million of compensation, in cash and stock, from profiled issuers; (2) failed to disclose that it had sold stock in many of the issuers shortly after dissemination of recommendations caused the prices of those stocks to rise; (3) said that it had performed independent research and analysis in evaluating the issuers profiled by the newsletter when it had conducted little, if any, research; and (4) lied about the success of certain prior stock picks. (SEC v. The Future Superstock, et al.)
sec.gov
SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15958 / October 27, 1998
S.E.C. v. The Future Superstock, Inc. and Jeffrey C. Bruss, Docket No. 98C6772 (U.S.D.C., N.D.Ill.)
The Securities and Exchange Commission announced the filing of a Complaint in the United States District Court for the Northern District of Illinois, on October 27, 1998, seeking a permanent injunction, disgorgement, civil penalties and other relief against The Future Superstock, Inc. ("FSS") and Jeffrey C. Bruss.
The Complaint alleges that since the spring of 1996, an Internet newsletter called The Future Superstock, which is published by FSS and researched and written by Bruss, has recommended to the newsletter's more than 100,000
subscribers and to visitors to the newsletter's web site (www.futuresuperstock..com) the purchase of approximately 25 microcap stocks which were predicted to double or triple in the next three to twelve months. In most instances, the prices of recommended securities increased for a short period of time after a recommendation was made in The Future Superstock, after which the prices of those stocks dropped substantially. It is alleged that in making these recommendations FSS and Bruss have violated the federal securities laws by failing to provide adequate disclosure in a number of significant areas: (1) for over two years neither the newsletter nor the web site disclosed that Bruss or FSS received compensation, in cash and stock, from nearly every issuer profiled; (2) FSS and Bruss have failed to disclose that in many instances they have sold stock in the issuer shortly after the dissemination of a recommendation in The Future Superstock caused its price to rise; (3) FSS and Bruss have represented in the profiles that they performed independent research and analysis in evaluating the issuers profiled by the newsletter when, in fact, little, if any, research was conducted in preparing the profiles; and (4) the statements made in the profiles regarding the success of past stock picks made in The Future Superstock have been false and misleading.
It is alleged that by engaging in such conduct FSS and Bruss have violated Sections 17(a) and 17(b) of the Securities Act of 1933 and Section 10(b) of the Securities Act of 1934 and Rule 10b-5 thereunder.
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