The Penny Stock Scam

Ever heard of penny stocks?  Penny stocks are stocks that are generally under $1 in price per share.  I have long since known of a process called pump and dump.  This when someone who has enticed you onto a list with the promise of 200% returns etc., buys a stock the day before then tells everyone to buy it at the open the next day, usually with some story of positive news that is about to be released that will EXPLODE the stock price.  This brings a lot of buyers of the stock into play, hoping to get there massive returns in the space of a few hours or days.  These stocks normally don’t have a lot of trading volume, commonly termed as liquidity, so when buyers rush in it spikes the price due to the underhanded manipulation by penny stock peddlers.  Of course at the open they sell immediately, take a nice profit and as everyone else tries to get out, you can find a buyer and are stuck watching it go to rock bottom, shocking right?  Well I received an email this morning from one such service. (I like to see what my so called competition is doing):

“Dear PSP Members, Free Trial Members and Affiliates of PennyStockProphet.com,

It is with a heavy heart that I write this email to you. I am the James formally behind pennystockprophet.com. My last name is not Connolly we changed the name to protect my identity my true name is James Edington. I am writing this email to let all of you know that I am currently in litigation with my partner who I started the website with. You see the site is owned by a California LLC (Galaxy LLC). Two partners, me and a guy named Jeff Edwards and more recently added a guy named David Gill. The Galaxy LLC also owns secretstockpromoter.com, www.stockonion.com, secretstockpromo.com, and pennypickfinders.com. Galaxy also has about 32 other urls owned but I don’t believe they have any sites attached to them. Now I can vouch for about 90% of these sites content is made up or taken from other sites (I did not write any of the content) my job was to pick stocks in the beginning before we were getting paid to send you advertisements. So basically what these lists are, is you the consumer are paying for us to advertise companies that are paying us to advertise to you. I know that does not make sense but that’s what these list are. I will also warn you about David Gill’s brother, I will not mention his name but he operates a couple sites like this and you may start receiving emails from them after I send this email out. If you do, I will send an email warning you what they are. I currently have no control of the content that is being put out or any of the company’s day-to-day operations. This is why we are in litigation. I thought it was only fair that you should know that if you belong to a site that used my likeness and story you should know that I am no longer making decisions in regards to the messages you are receiving. I would also at this point like to make sure you have read the entire disclaimer. You will read in there about the last name change, you will also read that the testimonials on the home page are all fake as well. We also at one time had a limited spaces available ploy on our site to get you to buy our product. You will read in there where it says, “from time to time we are compensated for the alerts we release”. I can tell you that we have not purposely done any picks in the last 2 years that we were not paid for by a third party to release to you. You may also read on every email that has been sent to you the amount in which we were paid. I will be going back to picking stock the way I used to on the bigger boards, and I will invite all of you to that list for free once I have the website up. I have attached a copy of the disclaimer and a copy of the email highlighting what I have written about in this email. Galaxy LLC (The Owners of the PSP list) is being ran buy two men Jeff Edwards and David Gill. Below you will also find contact information for Galaxy LLC (the owner of the PSP site) and their legal council in case you had any questions.

Thank You,

James “Connolly” Edington”

This is a completely immoral way to make money, these guys should be ashamed of themselves, but I guess they were too busy taking people’s hard earned cash to worry about that!

Beware the penny stock claims, it’s all nonsense.

May today be a profitable day…for all of us.

John