Big Brother
2 months ago
I would be willing to bet the British company officers (the ballet dancers) were just patsies and someone else really masterminded the whole thing, however, if I lost a lot of $$$ I might file a complaint with the The Financial Conduct Authority (FCA) in the UK or even the The National Crime Agency (NCA) against them, to see if an investigation could at least be conducted, given the gravity of the whole thing.
In HWIN, the company officers, one was the local High School principal and wrestling coach, and the other a Math Teacher at the same school, they were never charged by the SEC in the fraud, as they likely didn't really understand fully what going on...BUT...they did lose their jobs and their reputations in the community.
Big Brother
2 months ago
HWIN was the most famous sham IPO in history, it was covered by practically every major news outlet in the US.....just instead of a ballet company like MEDE, they took a little deli public instead but in reality it was always meant to be a reverse merger vehicle.
However, this was 100X worse than HWIN IMO, the guy behind HWIN I believe really wanted to find a legitimately good reverse merger but went about the wrong way of doing it by manipulating the share price through wash trades, to make the shell look more appealing. Now maybe they would have run a promotion post r/m... but we will never know because it never got there. Yes, they did eventually find a good r/m but by this time it was too late.
In HWIN's entire trading history these were the highest $$$ volume days...
2021-04-19--$212,659
2021-04-20--$152,749
2021-08-04--$91,219
2021-04-22--$68,600
2021-04-23--$43,483
2021-12-08--$42,764
2021-05-03--$38,341
Compare that with MEDE.....lol
10/2- $8,792,813
10/8- $6,988,404
10/1- $6,863,127
10/3- $5,483,732
10/7- $3,028,533
10/4- $2,538,044
9/30- $865,179
MEDE will never get the National attention of HWIN and maybe not even a SEC investigation or charges but it was WAY worse then HWIN ever was, investors in this got absolutely decimated here in this pump and dump.
Big Brother
2 months ago
Really all you can file a complaint with the SEC. Once in a great while there will be a class action lawsuit filed against a company in more higher profile pump and dumps but its rare. You could try contacting a legal firm like The Rosen Law Firm, they are probably one of the best. Many years ago I got scammed in a complex fraud, I contacted Rosen they said I was probably SOL but at least they looked into it for me....lol.
https://www.sec.gov/submit-tip-or-complaint/report-possible-securities-law-violations
Honestly, its just a hard lessoned learned. I have followed so many of these sham IPOs over the last 15 years or more, I can usually spot them. Basically what happens is that these sham IPOs are set up, with nominee seed investors and usually foreign nominee company officers. These companies are only looking for reverse mergers but they put in a BS company, like a ballet company, to avoid them being classified as shell companies. One of the most famous ones in history was HWIN, it was all over the news.
Once they find a reverse merger or change of control, they negotiate the sale of the unrestricted shares from the seed investors, to go along with the shell. The seed investors just hold the shares in name only, the company and those behind the fraud actually controls them. In almost all of these cases the seed investors pay peanuts (.01 or less) for tons of shares and they get reregistered in the new owners names after the sale, usually friends and family of the new owners.
In this case it looks like the Chinese didn't even try to merge anything in, it was a pure get rich quick scam, they got the shell, got the unrestricted shares and paid a promotor to pump the stock though off shore boiler rooms and/or pump email blasts.
What they had to pump I have no idea, it would have taken 10 minutes of DD and looking at the filings to see they had absolutely nothing. I have heard they sent out pump emails but I'd love to know what they actually pumped that would have brought in that kind of insane interest, that was nuts.
Big Brother
2 months ago
Yeah, I can't even think of a pump on a new issue in years that did that kind of dollar volume in such a short amount of time.
If they investigate this they will likely find what was a complete sham IPO, where the business plan is bogus, the seed investors and the foreign company officers, just hold their shares and titles in name only. Who really controls everything is probably some shady offshore group or individual, with offshore bank accounts, offshore boiler rooms, shell companies, etc, etc. I'd seriously doubt the ballet dancer company officers had much to do with it....though they could take the fall if the SEC does investigate, as the SEC and the United Kingdom Financial Conduct Authority have worked together to charge numerous British citizens with stock fraud in the US.
No guarantee the SEC will even bother to investigate though, however, it would not surprise me to see the principles behind it named in some SEC charges 3 or 4 years from now, as having pulled numerous similar p&d schemes. Given how elaborate it was, they have likely done it before and will do it again, especially considering how much money was made.
Big Brother
2 months ago
Only good for the insiders though....lol. The average OTC penny stock trader didn't pay attention because it started so high but this was a monumental pump for sure. Who was buying and why they didn't conduct any due diligence I have no idea, this was obviously going to end very, very badly.....and it did.
Only lasted 7 days before it got the CE....but those 7 days were insane....look at the dollar volume.
10/2- $8,792,813
10/8- $6,988,404
10/1- $6,863,127
10/3- $5,483,732
10/7- $3,028,533
10/4- $2,538,044
9/30- $865,179
Compare that to the 7 highest dollar volume days of the $250K dollar INSD promo suspended in 2021, makes it look like nothing.
2021-11-08--$2,532,050
2021-10-28--$1,222,038
2021-11-04--$912,119
2021-11-12--$888,335
2021-11-09--$840,240
2021-11-05--$835,542
2021-11-16--$767,628
The SEC almost has to investigate this, as it could usher in a whole new era of Chinese reverse merger scams. Even if they spent a million dollars on the shell and pump, they still came out on top given how slow OTC Markets reacted. There was really no excuse for OTCM to be so slow, even Stevie Wonder could have seen it was a promotion.
Big Brother
2 months ago
Absolutely brutal, going to be interesting to see if the SEC suspends and/or investigates this, it would be curious to see who was behind it, the Chinese, the Brits, or someone else...?? Who could have pumped it to those levels....and who was buying...there were frequently $100K+ dollar bidders during it.....crazy.
Big Brother
2 months ago
Third straight day of having the highest dollar volume of any OTC common stock with $5,484,330. Whoever paid for the promo certainly got their $$$'s worth, it just has not been a good one for traders as it started way too high, especially given the extreme risk of CE or suspension. A CE would drop this below $5 in a blink of an eye and a suspension would be a total loss.
Like I said I would not touch this personally, its just interesting to watch as both volume and dollar-wise its one of the bigger promotions there has been a long time.
Big Brother
2 months ago
Dollar volume was $8,792,697 today, by far the highest dollar volume of any OTC common stock, the next closest was Fannie Mae with $2.4M....lol.....for a 'shell risk' company thats insane....lol.
The majority of big promos the last 5 years or more, might do $2M - $3M dollar days tops. There is no way this does not get a CE or suspended. Remember the INSD promo in 2021, that got suspended very quickly, in less than 20 trading days, the highest dollar volume during the promo was just $2.5M.
I would not touch this with a 10ft pole, someone is getting rich off this....but I guarantee its not those buying it, they are going to get burnt badly.
Big Brother
2 months ago
Dollar volume was $6,862,982 yesterday, highest of anything on the OTC beyond a handful of 'Y' stocks(ADR's).
I would say this is a very high dollar stock promotion but with that kind of exposure, of being the highest dollar volume common stock, makes the likelihood of a CE or suspension that much more risky. Tread carefully if playing this one IMO.
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