Two Texas Miscreants Behind the Penny Stock Spam-Scam, says SEC
In the security fraud charges filed by the Securities & Exchange Commission (SEC), two individuals from Texas were accused of high tech scam, which hijacked the PCs across the nation to send out numerous spam mails and rip above US$ 4.6 Million bucks off the investors, as reported by mondovisione on July 9, 2007.
The scheme used "Proxy bot-networks" or "botnets". But, it was thwarted after a Commission enforcement-lawyer received one unsolicited email at work.
Both state & local authorities imposed indictments accusing Darrel T. Uselton and Jack E. Uselton - Darrel's uncle, of being involved in money laundering and organized criminal acts. The criminal authorities in Texas also have confiscated above US$ 4.2 Million from Useltons' bank accounts.
According to SEC, the men acquired shares in no less than 13 penny-stock firms and then sold the "almost worthless" shares after creating hype around them via the spam emails as well as direct mail campaigns over the period spanning May 2005-December 2006.
This recent step in anti spam initiative of the Commission is expected to safeguard investors from conmen who think investing public to be their personal ATMs, says Christopher Cox, Chairman for SEC, as reported by Chron.com in news on July 9, 2007.
The scheme that the two miscreants executed reflected a widespread scorn for the marketplace and investors. The Commission would track the swindlers involved in fraudulent schemes down and punish them, said the Director of Enforcement for SEC, Linda Chatman Thomsen, and Sec.gov published it on July 9, 2007.
The Commission is seeking permanent injunctions, civil penalties, and disgorgement with prejudgment interests against the two. Besides it wants that Useltons should be barred from penny stock.
The spam campaign of Useltons included the following company stocks: Oretech, Inc.; Advanced Powerline Technologies; Intelligent Sports, Inc.; ESPRE Solutions, Inc.; Spooz, Inc.; Avondale Resources Corporation; and several other, as per SEC's complaint.
In March '07, SEC deferred trading in three firms' securities, including Leatt Corporation, Software Effective Solutions Corp, and Advanced Powerline Technologies. Oretech Inc's securities registration was revoked by SEC in December 2005.
Related article: THE SPAM MAFIA
» SPAMfighter News - 23-07-2007