Tag Archives: Microcap stock fraud

Is Noveshen Still Denying Involvement with Pump & Dump Stock Scams?

Is Eric Noveshen still denying that he has ever been involved with microcap stock fraud? -Noveshen keeps insisting he was never involved in a pump-and-dump stock scam. Did he forget about Itronics? It was a long time ago but he can’t even remember that he’s involved with Pure Hospitality Solutions, as of, when was the last deposit he got from selling shares of PNOW? Likely within the last couple months. Investors pay consultants of penny stocks, get no return and are forgotten – quickly. Don’t be a victim.

Microcap Stock Fraud Noveshen

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US Attorney General: Why did Eric Noveshen Walk Away but Daryl Dworkin Had to Pay?

US Attorney General, how much more securities fraud are you going to let Eric Noveshen get away with?

Why did Daryl Dworkin have to pay back the $375,000 kick back money and fines but Noveshen didn’t have to pay a dime of restitution?

Why are two men guilty of the same securities crimes but only one is sentenced and fined?

Why was Eric Noveshen’s cut of the Medgen money laundered “consulting fees” left for him to enjoy? Did he even pay taxes on that money? Probably not, he’s allowed to commit tax evasion too? Noveshen has some serious power with the SEC and IRS, not even an hand slap.

Does the SEC and Dept. of Justice know or care how many investors have been hurt in six years since they let Eric Noveshen walk away from his criminal acts? Check with investors in these microcap stocks ….EDWY, SMEV, SLGS, PNOW (formerly OTHM), HIMR, GAHC, BMIN and more. 

Transcript from United States of America v. Daryl Dworkin 

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Transfer Agent Investigated by SEC Connected to a Noveshen Pump-and-Dump Scam

On May 25, 2016 a cease and desist was issued by the SEC against transfer agent American Registrar & Transfer Company.

This is the same transfer agent the consulting team led by Ajene Watson consisting of Eric Noveshen insisted that microcap company Simulated Enviornment Concepts, INC (SMEV)  use as a TA so that defendants, including Noveshen, could “control and influence” the transfer agent during their manipulation of SMEV’s stock price.

Click to access 33-10082.pdf

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Connection to SMEV Stock and a list of some companies American Registrar & Transfer Co. associated with from http://www.otcmarkets.com

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Below are parts of the complaint detailing the pump and dump scheme allegedly lead by Ajene Watson, and the entire complaint is here:

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SMEV Compaint Cover

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The SEC defines the important role of transfer agents in preventing microcap fraud scams below:

Revisiting the Role and Regulation of Transfer Agents

https://www.sec.gov/News/Speech/Detail/Speech/1370540828740

“Obviously, when trillions of dollars are involved, it is important that transfer agents fulfill their responsibilities with accuracy and professionalism.  And, fortunately, that is usually the case.

Another critical responsibility of transfer agents is to keep track of the restrictive legends and “stop transfer” orders that distinguish restricted securities and control shares from freely-tradable securities.  As such, transfer agents are often in a position to prevent unregistered securities from being distributed in violation of the Securities Act.  This gatekeeper role takes on particular importance with microcap securities because typically there is little, if any, meaningful disclosure or independent research regarding such companies.  The potential for fraud and abuse in the microcap markets is well-known.[27]  Indeed, violations of the registration provisions are often associated with microcap pump-and-dump schemes and other penny stock fraud.

In fact, the Commission has brought numerous cases against transfer agents who violate federal securities law in connection with fraudulent pump-and-dump schemes.[28]  You can expect the Commission to bring more cases since, as many of you know, the Division of Enforcement has created a Microcap Fraud Task Force that will, among other things, target gatekeepers such as transfer agents, attorneys, and auditors who participate in pump-and-dump schemes and penny stock fraud.[29]

Unfortunately, in addition to those transfer agents that are active participants in fraud, there are also those transfer agents that have been duped into removing restrictive legends from stock certificates; as a result, unregistered securities have been illegally sold in the public markets.  Frequently, this occurs on the basis of fraudulent attorney opinion letters[30]  Often, however, transfer agents have acted in the face of numerous red-flags warning of an illegal stock offering.[31]  This occurs with enough regularity that I believe the Commission should clarify the steps that could be taken by transfer agents and other gatekeepers to prevent violations in the microcap space.[32]

Memorial Day Reminder -Recognize Red Flags of Stock Scams

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On this day we salute those who gave all. A message to those who “take all”stock fraud is very unpatriotic.

Defrauding fellow Americans and other investors around the world might make you nice living, but ever think about the livings of those you are scamming? Maybe its a war hero? Did he or she lose a limb? Did he or she just get back from duty in Afghanistan while you sat behind a computer posting fake hype to get him to invest in a shell you stuffed a fake company in? Maybe that $5,000 invested in your penny stock means nothing to you but is half of someones retirement?

Note to investors: perpetrators of stock fraud do not care. REPORTERS, the SEC, FINRA, POLITICIANS and the COURTS can’t catch all the microcap stock fraud so educate yourselves before investing.

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https://www.investor.gov/investing-basics/avoiding-fraud/types-fraud/microcap-fraud

The Seedy World of Microcap Stock Advisors

https://www.law.cornell.edu/wex/investor_protection_guide_micro-cap_stock_fraud_pump_and_dump