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story category SEC Goes After Penny Stock Spammers
Suspends trading of 35 companies...
(old news - 09:41AM Friday Mar 09 2007)
tags: business · spam
Tipped by newview See Profile
If you're tired of getting penny stock spam in your index, you should be happy to learn that the SEC is at least trying to crack down on the practice. In a statement, the SEC says they suspended trading Thursday in the securities of 35 companies that were heavily promoted in spam campaigns (the list of companies can be found here). Yes, it's amazing that there are people who take stock advice from spammers (you may recall the guy who tried just for fun). Some get the spam and then ride the stock before it collapses (see LA Times), profiting off of the idiots who invest in the stock after them. By law, the SEC can only suspend these companies for 10 days unless they find dubious company activity.

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Forums » SEC Goes After Penny Stock Spammers
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Post a:

newview
Ex .. Ex .. Exactly
Premium
join:2001-10-01
Parsonsburg, MD

Well, wadda' 'ya know . . .

Sending email to enforcement@sec.gov works.

Take THAT scumbags.
permalink · 2007-03-09 09:44:32 · Reply to this
moonpuppy

join:2000-08-21
Glen Burnie, MD

About time.....

This is one way to fight spammers. Cut them off from their benefactors.
permalink · 2007-03-09 09:53:33 · Reply to this

GOLFnSUN
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast

Re: About time.....

And Google adds their 2 cents to the penny stock spam flood by urging their GMAIL users to use the report spam feature.
»googleblog.blogspot.com/2007/03/···rts.html
--
--
My BLOG
My Web Page
permalink · 2007-03-09 10:21:39 · Reply to this

beck
Premium,MVM
join:2002-01-29
On The Road

Too many stupid people!

Geez, people actually buy stock because of spam mail??? It would be easier for them to just send their money to me.
permalink · 2007-03-09 10:13:23 · Reply to this

cableties
Premium
join:2005-01-27
·Verizon FIOS

Re: Too many stupid people!

It's not the buying, its the selling short. Say stock OTB-ABCD is doing well at $1. You decide that it's going to tank and bet on that. Then it does a major sell off. You win.

Pump it up, dump it, profit. Others lose. And win again as it dumps.

But I doubt SEC will win this one as those companies may have nothing to do with it; it's the day-traders selling short. Find them and you find the spammers. (Who wants to bet it's russian mafia? 20-1)
permalink · 2007-03-09 11:03:35 · Print · Reply to this
dentman42

join:2001-10-02
Columbus, OH

Re: Too many stupid people!

Could backfire. If you want to harm a company, create a pump and dump spam for their stock...
permalink · 2007-03-09 17:45:39 · Reply to this
russotto

join:2000-10-05
Collegeville, PA

Stock strategies

Darn it. There goes my winning stock strategy of purchasing stocks which look likely to be future spammer targets, then selling when the SPAM hit.

(I'm kidding, but it might actually work if you could predict the spam stocks well enough)
permalink · 2007-03-09 10:23:43 · Reply to this

swsamurai
Premium
join:2002-04-17
Bakersfield, CA
clubs:
·Bright House

Investing


I actually already knew about KoKo Petroleum through my brother-in-law, who works for an oil company. I invested a while back and actually did get to take a little advantage of the spike in the trade price. But I am in for the long haul.

I get these messages on my cell phones now too. Talk about manipulating the market. I wondered how long it would be before the SEC tried to drop the axe. Not that it will do to much.
permalink · 2007-03-09 10:24:35 · Reply to this

T1 Rocky

join:2002-11-15
Dallas, TX
·Time Warner Cable

Another angle

I was under the impression that the companies were the victims here too. The way I thought the scam worked is someone (and that can be absolutely anyone) buys a bunch of the stock and then hires a spammer to spew it for a week then they sell it. The company gets hate mail and is flooded with calls from people thinking the company is the spammer.
So what's to stop an unethical company from spamming in favor of their competitor then giggleing as the FCC hassles/fines/suspends them?

I don't have a NYTimes password so I didnt read the story so maybe I'm missing something.

The problem is spammers will send out a million emails for $100. With those odds, some weasil is going to take them up on it.
permalink · 2007-03-09 10:50:54 · Print · Reply to this

swsamurai
Premium
join:2002-04-17
Bakersfield, CA
clubs:
·Bright House

Re: Another angle

A company would not want to do that to itself because the resulting blowback would cause financial woes. The company itself you really gain nothing. The stock may start at say $.12 and spike to $1, but then when the profit takers get their share, the price could go down below the original start point.

I picked up about 500 shares of Koko when it was at something like $.60 a share. Then the spammers hit and it went to $1.40, or so. I sold a few shares but kept the majority. Now the stock is down to like $.09 a share. I am holding onto it hoping... and hoping...
permalink · 2007-03-09 14:06:35 · Print · Reply to this

ftthz
If love can kill hate can also save

join:2005-10-17

hrmm how much do spammers

make off this kind of stuff ...
permalink · 2007-03-09 11:29:16 · Reply to this
patcat88

join:2002-04-05
Jamaica, NY

can make money

I should invest in these stocks, sell them after 36 hours. Make small profit before they crash.
permalink · 2007-03-09 12:16:17 · Reply to this
biochemistry

join:2003-05-09
92361

Well they're missing some

My private email address, who I give out to no one except close family members, has been flooded by stock spam (i can only guess an angry family member submitted me to some spam site). It gets past the filters by using jpeg images instead of actual text. They use such lame subjects as "compelling trill" and "Houston we have a problem". Some of the companies in on this spam scheme are MPRG (Motion Picture Release Group) and VCDY (Voice Diary) and just yesterday CBRP (Cambridge Resources Corp). Viewing the list of companies that have been suspended, these three are NOT on that group. What gives? They have to be some of the most spammed of them all. When I find the people responsible for the spamming, it's going to get ugly.
permalink · 2007-03-09 12:36:07 · Print · Reply to this

jjoshua
Premium
join:2001-06-01
Scotch Plains, NJ
·Verizon FIOS
·Comcast

Re: Well they're missing some

said by biochemistry See Profile :

My private email address, who I give out to no one except close family members, has been flooded by stock spam (i can only guess an angry family member submitted me to some spam site).
Or your family member is running malware which sent their entire contact list to the spammer.
permalink · 2007-03-09 13:05:28 · Reply to this
mjcrocket
Mjc

join:2000-12-02
Abingdon, MD

Re: Well they're missing some

said by jjoshua See Profile :

said by biochemistry See Profile :

My private email address, who I give out to no one except close family members, has been flooded by stock spam (i can only guess an angry family member submitted me to some spam site).
Or your family member is running malware which sent their entire contact list to the spammer.
Or they just used a random address generator, every address generated that does not bounce is a good address that is then added to their "active" e-mail address database. No human intervention required!!
permalink · 2007-03-09 16:21:54 · Print · Reply to this
quatrix
Premium
join:2005-02-11
Davie, FL
3 edits

Nice thought, but how is this supposed to help?

The spammers load up on a penny stock, spam it, sell it, then move on to another stock the next day. How does suspending trading of previously spammed stocks help anything? They've long since moved on to something else.
permalink · 2007-03-09 13:54:56 · Reply to this
public

join:2002-01-19
Santa Clara, CA
·DSL EXTREME

Re: Nice thought, but how is this supposed to help?

said by quatrix See Profile :

The spammers load up on a penny stock, spam it, sell it, then move on to another stock the next day. How does suspending trading of previously spammed stocks help anything? They've long since moved on to something else.
Precisely.
But they can say by doing so they protect the children, and hence need more staff and funding.
permalink · 2007-03-09 14:31:39 · Print · Reply to this

swsamurai
Premium
join:2002-04-17
Bakersfield, CA
clubs:

Re: Nice thought, but how is this supposed to help?


Unfortunately by blocking the trade of the stock, they are not hurting the people who already made their little profit, but they are hurting the company itself.
permalink · 2007-03-09 18:52:09 · Reply to this

elvey
Spamassassin

join:2001-02-17
San Francisco, CA

Ameritrade infiltrated/cracked by stock spammers

See »snurl.com/ameritrade
permalink · 2007-03-09 15:06:43 · Reply to this

wmcbrine
Touched by His Noodly Appendage

join:2002-12-30
Laurel, MD

Where we really need a crackdown...

...is on penis pill purveyors.
permalink · 2007-03-09 17:40:16 · Reply to this

capecoddah

join:2005-03-18
Yarmouth Port, MA

Re: Where we really need a crackdown...

Hmmmm.... Maybe a boiler-room play on the magic pill makers???
permalink · 2007-03-10 03:38:35 · Reply to this

HRM
God Bless America
Premium,MVM
join:2002-02-03
Darien, CT
clubs:

help the SEC

If I have a minute I forward that kind of spam to the SEC.

email is enforcement@sec.gov
permalink · 2007-03-10 08:11:27 · Reply to this
Forums » SEC Goes After Penny Stock Spammers

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