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quote:

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Originally posted by glassman:
i always wonder why pinks file.

there's not much upside to it...

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quote:

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Originally posted by glassman:
The SEC might step into a pinksheet to investigate, if the right pressure is placed on their arm to do so. Chances are the scammer gets away with it do to lack of regulations and folks caring enough to do something about it in the penny wasteland.

it appears to depend on the scam.

BCIT is a three year old story whereby Mario Pino counterfeited and sold about 200,000,000 shares of company that had an OS of 4 million.

then the MM's or the hedges or the borkers or most likely a combination of the three dumped at least another 400 million naked shorts into the market bringing the "float" to something like a billion shares...

after two full years? the SEC finally filed a formal complaint against Mario

http://www.sec.gov/litigation/complaints/2008/comp20466.pdf

they also "accepted" a plea deal from his (apparently) lone accomplice:

On February 25, the Commission issued an Order Instituting Administrative and Cease-and Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 8A of the Securities Act of 1933 and Sections 17A(c) and 21C of the Securities Exchange Act of 1934 (Order) as to Pamela J. Thompson. The Order finds that, in April and May 2005, Thompson prepared false BCIT documents, including counterfeit stock certificates, while knowing she did not have the proper authority. Thompson is a resident of Phoenix, Arizona. During June and July 2005, Thompson received and sold two million shares of fraudulent BCIT stock, earning profits of $7,632.
http://www.sec.gov/news/digest/2008/dig022608.htm

her punishment is a JOKE... she was told to disgorge the 7grand and nothing else (so far). she can't be a transfer agent? LOL so what..

C. Respondent Thompson shall, within ten days of the entry of this Order, pay disgorgement of $7,632 and prejudgment interest of $830.82 to the United States Treasury. If timely payment is not made, additional interest shall accrue pursuant to SEC Rule of Practice 600. Such payment shall be: (A) made by United States postal money o

http://www.sec.gov/litigation/admin/2008/33-8899.pdf


the stock has been untradable since Sept of '05...

there's a shareholder meeting today to try to get it trading again, but nobody is expecting much...

it took a long campaign of letter writing to elected officials and a shareholder lawsuit by the copany to finally get the SEC to file the charges against Mario..

anybody who's followed the penny market since '04 would be familiar with all the times Mario scammed people, but it took outright counterfeiting to "get" him....

IMO? the SEC's general attitude is that if you are going to play a stock under $5 and it's not listed on the Q or on the NY? you are taking the risk all to yourself...

thru the course of following the BCIT saga i've learned that the SEC files alot of charges against "shady" traders that they LOSE.

and even when they "win" their case? the shareholders rarely recover anything.

the weird part about not recovering moneys is that the Fair Funds Recovery program appears to be cash heavy, and yet people still don't seem to get compensated:

Provision introduced in 2002, under Section 308(a) of the Sarbanes-Oxley Act. Fair Funds for Investors was put into place to benefit those investors who have lost money because of the illegal or unethical activities of individuals or companies that violate securities regulations. Essentially, this provision enabled the Securities and Exchange Commission (SEC) to add civil money penalties to disgorgement funds for the relief of the victims of stock swindles.
http://www.investopedia.com/terms/f/fairfundsforinvestors.asp

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