Tag Archives: Pump and Dump Stock scam

Man Jailed for Defrauding Michigan Investors in 2014 was Connected to Noveshen’s Penny Stock PNOW

Thanks to all from the press freedom convention who helped with our new encrypted drop. We are pleased that it has offered more identity protection to sources who wish to remain anonymous. Similar programs are used by internationally recognized press organizations who expose wrong doing in war zones, governments; legal systems; business operations and more.

Today we feature one product of the system that automatically encrypts identifying information.

According to our source, and fact checking, many at micro cap stock Pure Hospitality Solutions, PNOW, claimed the company was not connected to Pat Hundley who was jailed in 2014 in Costa Rica for allegedly defrauding close to $7-million from Michigan investors. PNOW was formerly called  OTHM before it changed its symbol in Fall 2014. Eric Noveshen is a consultant to the stock though he claims for purposes of a lawsuit against this website not to be. Much like OTHM claimed to have no affiliation with Patrick Hundley after his arrest.

PNOW reportedly ran between five to eleven pump and dump stock scam cycles in the last decade.

Ken Chua, the Chairman and CEO at the Time of signing this document, was sanctioned by the British Colombia Securities Commission in August 2014 and later resigned his position to Melvin Pereira, who remains the CEO today.  The BCSC commission found that Ken Chua “continues to pose a risk to our investors and our markets.”

This document proves a connection between Hundley, Pereira and Chua.

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Man Accused of Fraud Against Michigan Investors

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Consultant Puts Magnifying Glass on Company by Writing it Into a Lawsuit

Did the men running micro stock Pure Hospitality Solutions miscalculate when they allowed Eric Noveshen manipulate a financial report to meet the needs of the defamation lawsuit he filed this year?

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https://ericnoveshen.wordpress.com/2016/05/23/penny-stock-company-discusses-negative-chat-room-posts-in-financial-reports/

Noveshen had a hand in falsely writing into quarterly and annual financial disclosure reports for PNOW that the company severed ties with him. “The company unilaterally determined to retroactively terminate the consulting agreement with this consultant due to certain groups of individuals that are posting false and defamatory attacks about the company which are somehow tied to this consultant.”

Read it out loud, it is not only out of place it shows that they allow manipulation of financial reports. Thus adding credibility to hundreds of online claims made during the last four years that PNOW is a penny stock that has manipulated financial disclosure.

It’s no secret that Noveshen and his longtime friend and business associate Ajene Watson are part of the consulting team pulling the strings behind the penny stock PNOW. It’s been documented all over for years before Noveshen claims the “false and defamatory remarks” were put on the internet about him.

Hey, Noveshen needs to add a few words to a company financial report to make a court believe he had damages, no big deal, anything for a friend.

In allowing PNOW to become part of Noveshen’s case is like putting it on trial for being a pump and dump. At very least it keeps PNOW in the public discussion and knows when the SEC or FINRA started looking.

The lawsuit that crawls under Noveshen’s skin due to all the public commentary about it on the internet is called Allen v. Ajene Watson, et al. It was filed in Florida in 2012 and internet commentary began immediately and never stopped.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=102223261

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That lawsuit detailed how Noveshen, Watson and others sweet talked their way into becoming the “consulting team” for penny stock company Simulated Environment Concepts, SMEV, in 2009, then set in motion a “pump and dump” scam. It also states that the group, including Noveshen and Watson did similar scams on other companies, Edoorways, EDWY and Oriens Travel – which changed its name in 2014 to Pure Hospitality Solutions, PNOW. Likely because the owner of the company, Allen Licht was acting as his own lawyer, it goes into the most minor details of how they pulled off the scam. Including inserting a transfer agent who would play ball, Christopher Day, (who recently got in trouble with the SEC). They also “inserted” Noveshen’s mother as the book keeper.

These facts and opinions have been written about since 2012. Is Noveshen going to sue everyone who ever wrote that Edoorways, Simulated Environment Concepts and Pure Hospitality Solutions were pump and dump scams? If so he needs to add a lot of names to the defendant list.

What a hoot!

** Below, readers thoughts on the subject

investorshub.advfn.com/boards

“This is NOT AT ALL a good thing for Gary or EDWY. Ajene Watson was a “consultant” for EDWY, so they really cannot claim ignorance on this one.”

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81345633

“This makes me happy that the scum that have been doing this are getting busted, but I do feel bad for the innocents that will learn about stinky pinkies the hard way.

All someone has to do is read the lawsuit. Again has nothing to do with edwy. Mentioned that edwy was a victim. The whole thing is much to do about nothing really. Just noise.

See GARY was 100% RIGHT HERE! EDWY has nothing to do with that lawsuit first off. You cant twist this any other way.

Remember back 3 years ago when watson and Ian mitchel tried to take over EDWY. EDWY’s complaint was a failed take over attempt. This just adds to Gary’s claim about these scum bags. Now here is proof about the whole thing. Watson and Mitchel are apparently getting theres. Karma is a b*tch!

Its seems someone else had problems with these guys, not just EDWY.
More proof! Makes me feel good!”

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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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

 

Why Reporting On Stock Manipulation Is Important

Investors Beware! Microcap stocks are risky, ‘the odds are stacked against you.’

Stock fraud has devastating effects on victims and thus, reporting on stock fraud is extremely important.

On January 29, 2010, the FBI published a story about a ten year investigation into pump-and-dump stocks scams. The investigation uncovered more than 40 schemes, convicted 40 perpetrators, identified thousands of victims in nearly every state and discovered hundreds of millions of dollars in losses.

That pump-and-dumps target elderly investors is no secret. That the FBI can’t keep up with the pace of pump-and-dump scams is no secret, they sprout like “mushrooms.” That perpetrators of stock fraud don’t want coverage of their actions is common sense. If information is easy to obtain in a simple google search, less people will fall victim.

https://www.fbi.gov/news/stories/2010/january/fraud_012910

From the FBI story:

How do these scams work? In this case, the ringleaders created shell companies whose penny stock (worth less than $5 a share) was traded on the OTC Bulletin Board (not on the more widely known New York Stock Exchange or NASDAQ). They secretly issued most of the shares for themselves in fictitious names, then touted their companies’ stock through false statements in press releases, electronic bulletin board postings, online newsletters, and the like.

Often using their retirement funds, unsuspecting investors purchased the highly-touted stock—or their unscrupulous financial advisors did so without their knowledge—driving or “pumping” up the price. Then, the fraudsters “dumped,” or sold, their stock for thousands or millions of dollars, causing the stock to plummet and innocent investors to lose their shirts.”

In many cases, the losses were significant. And while running an undercover operation and gathering enough evidence to put the criminals behind bars, our focus has been on helping victims get some of their hard-earned money back. We spent years interviewing more than 600 mainly elderly victims, painstakingly documenting their sometimes heartbreaking losses. For example:

  • We assisted a doctor from a prestigious hospital who began suffering from severe depression after learning of the scam and became unable to work. To help a husband and wife who had both developed dementia during the investigation, our agents traveled to their nursing home and spent hours with them, their family members, and their accountants to substantiate their financial losses.
  • We worked with a man suffering from multiple sclerosis whose stockbroker had liquidated his pension and IRA and left him nearly penniless.
  • We learned of another victim who not only invested her savings and her pension, but also took out a second mortgage to invest more. Needless to say, she lost everything.

An investment blog on Reddit offered a behind the scenes look at the inner workings of one particular IR (investor relations) company – that was a pump-and-dump shop. “Stock Jockey” states, “The “odds are stacked against you right from the beginning. In your efforts to do some research on a penny stock, you may find yourself reading some forums and thinking you are getting unbiased opinions. You are not!

IR companies often handle investor relations for a large number of small cap stocks. People usually don’t get to see what really goes on. In the back office of one particular IR company there was a large space dedicated to about ten desks that had a computer and 2 screens on each desk. There were ten young guys all tapping away on their keyboards.

Strolling over to the desks, it became apparent that these guys were on various stock forums, chatting away with each other!

it seemed that, each screen could have four browser windows, each browser window could potentially be a different alias on some chat board.

With ten of them in that room, they could easily be creating the illusion that some stock was getting a lot of chatter and excitement on some chat boards!

This is part of what IR firms do for companies. They charge tens of thousands of dollars per month for these kind of services.

If you are ever looking at some penny stock and you see 5,10 or 20 people all chatting up that stock, it is likely that those aliases are simply some promotion firm at work!

It is their job to create excitement and generate hype, it is all they do all day, every day.

I have even seen a tactic where one or two guys will pretend to be bearish on a stock and go on the attack, only to be “convinced” later on that the stock is actually very good and will rally soon. The tricks are endless and these guys pros and manipulating emotions

Be ever weary!  These IR firms were often paid in tradable stock! I think there are regulations these days which have banned this practice, but there are loopholes to it.

Basically this meant that if you were the CEO of penny stock WXYZ and you wanted to hire this IR firm, you would not write them a cheque for $50,000/month, you sent them a bag full of your shares! If you stock was trading at 10c, this firm would get 500,000 free trading shares. This is a win/win for the penny stock and the IR firm (assuming they do their job).

For the penny stock it means you do not have to lay out any cash, you simply hand out stock which costs you nothing (penny stocks are notorious for increasing the authorized shares, ie dilution). For the IR firm it means that they can potentially make a lot more money than if they were simply paid in cash. Having 500,000 shares @10c means that if they could pump the stock up to 20c, they have basically made $50,000 more! This is why they would game the message boards and farm out the promotional activities to other promoters, to try maximize their gains.

Here again we have another potential reason why a stock can suddenly fall for no reason at all. If this IR firm’s CEO decided he wanted to buy a new Porsche this weekend, he could simply pick a random clients stock that he was no longer working for and dump all the shares he had in it. He does not care about the potential of the company and where the stock was going in six months from now, he simply wants to cash out.

Stock buyer beware, ask a lot of questions and read the fine print!

 

 

 

Eric Noveshen Seeks to Conceal his Fraudulent Business Activities

Eric Noveshen anti freedom of speech

Eric Noveshen, a great divisor of financial schemes, a great vexatious litigant, a great manipulator of Florida foreclosure laws to attain free housing, a great, to sum it up a great fraud – is seeking to have this website and any others exposing his financial scams taken down.

Noveshen demands that these pages contain “untruthful” claims and defamatory remarks, much like the baseless “Cease and Desist” Noveshen posted on a RipOff Report about his business. Other then reader comments, which we cannot verify, Noveshen has not identified anything untruthful on this site. The fact is every blog is based on and often features the public document upon which it is based. Proof is in the publications, many written by Noveshen himself.

Noveshen’s goal is to deprive would be investors of information. He will bully, harass, stalk and sue, anyone attempting to combat his economic crimes through exposure. He want’s this site down because it links his dozens of fraudulent activities in one easy-to-find location, ultimately shrinking his pool of potential victims to deprive of money. Operating in secrecy is the only way the “stinky pinky” penny stocks Noveshen makes a living off of thrive. If his name is publicly linked investors would run!

We issue this challenge – can someone provide the name of ONE company Eric Noveshen has been a broker/employee where he was not sued for illegal broker activities? Or fired for same? Or didn’t include in his personal bankruptcy to avoid repayment of debt? Not Roan Meyers (sued and settled for unauthorized trading, fraud, common law fraud and negligence). Not Gruntal & Co. (sued unauthorized trades) ultimately fired for violation of firm policy. Not Newbridge Securities, see Noveshen bankruptcy filing, 2005.

Is there any company Eric Noveshen has acted as a “consultant” to that is not associated with claims of kickbacks, shorting, churning, pump and dump or other stock manipulation tactics?

Is there any home Eric Noveshen has resided from 2000-2016 that has not been the subject of a foreclosure lawsuit? See Bank One Indymac v. Eric L. Noveshen 2003. Wells Fargo v. Christina Noveshen and Eric Noveshen 2003. Or property documents on 436 NE 10th Ave, 33301 and 508 Coconut Isle Dr., 33301.

Are any of Noveshen’s companies not associated with a type of fraud? Envision Capital, Bridgewater Capital, Bridgewater Advisors, HR Ventures, Envision Foods have all been linked to fraudulent activities.
There are no erroneous claims contained in these pages. If any documents are misinterpreted, with a proving of otherwise we professionally ensure correction will quickly ensue.
A warning is issued to anyone considering doing business with Eric Noveshen, loaning him money or purchasing a penny stock Noveshen is positioned to benefit from:
Any man who seeks to bury the first amendment right to talk about his business interactions because he cannot boast of legitimate success is FISHY. If it smells like a fraud and flops like a fraud throw it back and WASH YOUR HANDS CLEAN.