Tag Archives: SEC

Noveshen Still Insists he Had No Ties to NIR Fund

Why does Eric Noveshen keep insisting he had no ties to the now defunct NIR fund when there is so much evidence to the contrary?

Maybe something to do with the massive SEC investigation and all the lawsuits that shut the New York based NIR Group down.

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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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Blog Serves Public Interest of Investors And Promotes Noveshen is Willing to ‘Play Ball’

Eric Noveshen has a knack for the poor me story (as stated by his grandmother in a letter the last blog).

Now he’s asking the court to shut down this blog claiming that he can’t get work. Anyone who knows what kind of work Noveshen does can see this blog is the best advertisement for hire Noveshen’s ever had.

You can’t go on a LinkedIn resume and write “I’m down to play dirty ball in microcap stock fraud.”

This blog does that for him in shining colors. So the false loss of work story is not why Noveshen wants this down. This blog helps him get work.

Noveshen wants this blog down because while those companies want guys who will play dirty, but Noveshen doesn’t want to show them he’s on the radar of the SEC, FINRA and the Department of Justice. And don’t forget the many financial investigative reporters lurking in the background just waiting to break their next story.

To remove this blog would be an injustice to the Public, to anyone considering entering the microcap stock market. According to Investopedia, “Penny stocks aren’t a lost cause, but they are very high-risk investments that aren’t suitable for all investors. If you can’t resist the lure of micro caps, make sure you do extensive research and understand what you are getting into.”

The full article explains why extensive research is often hard to come by, the promoters and consultants make it that way on purpose. They don’t want you to know that $5000 suit you are about to buy online is stained before you click order.

The Lowdown On Penny Stocks” | Investopedia http://www.investopedia.com/articles/03/050803.asp#ixzz4CgSAN9lW

Yes we also cover Noveshen’s grotesque abuse of the Broward County and Florida court systems and his willingness to steal money from his own family because that’s called transparency folks. If you’re going to invest your money in a penny stock you should have the right to know if one of its main consultants will take from his own family then he’ll probably take from you. The public should have the right to this knowledge.

Penny stocks are a fools game.

“You’re betting against the house – and the house always wins,” according to reporter John Divine, in 5 Reasons to Avoid Penny Stocks at all Costs. “Everyone remembers the grandma who won the $10 million jackpot playing the slot machine.

“5 Reasons to Avoid Penny Stocks at All Costs”

http://money.usnews.com/investing/articles/2016-03-29/5-reasons-to-avoid-penny-stocks-at-all-costs

“But no one recalls the 100,000 players who lost $100 apiece to pay her out. No news articles are written about the next 100,000 gamblers who flushed their hard-earned savings into the casino’s bottom line.

To take this information down would be a disservice to the public interest. AND THERE WILL BE MORE PENNY STOCK INVESTORS VICTIM and victims to other financial scams orchestrated and calculated by Eric Noveshen and his crew.

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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]

“You Up Ta Speed on Shorting?”

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Yesterday’s blog, “Eric Noveshen’s Biggest Financial Scam Money Laundering Through Consulting Fees” generated a lot of emails. One claimed to have been a victim of the NIR, Daryl Dworkin, Eric Noveshen, Medgen PR scam. Almost any email of relevance said look at the pattern of shorting.

https://ericnoveshen.wordpress.com/2016/06/05/eric-noveshens-biggest-financial-scam-medgen-consulting-fees/

This is what Pdgood said on http://www.investorshub.com too, “You up ta speed on shorting? Eric wants no part of the questions that would be asked about Medgen, Robins as CEO of ECMH…Eric was front and center in all these scams.” 

As explained, Noveshen was a PIPE deal finder for a New York hedge fund NIR. Noveshen found small or struggling companies that needed funding. He would offer funding from NIR, with a catch. The company had to pay large fees for PR, to a PR company chosen by NIR. That company was Boca Raton based Medgen, a money laundering factory disguised as a producer of holistic health products.

The PR money was and split between Dworkin of NIR, Noveshen of Envision Capital, and Paul Kravitz head of Medgen.

From the affidavit of the CEO of the Juniper Group, an NIR (AJW Funds) funded company confirmed that the funded companies were required to pay money to Medgen (Paul Kravitz) for “PR” and “Consulting”.

AJW QUALIFIED PARTNERS, AJW MASTER FUND… v. JUNIPER GROUP, INC.

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Source: http://www.investorshub.com

NIR illegally shorted a long list of stocks of the companies it funded. The pattern of shorting and other securities frauds committed by NIR is spelled out in many lawsuits against NIR and its AJW Funds. Note* it fits the same pattern of stock manipulation that Ajene Watson and Eric Noveshen are accused of in the Simulated Technologies/Licht v. Watson lawsuit.

Read for yourselves….very similar illegal patterns. Dworkin and Ribotsky are out of the game for a few years, but Ajene Watson and Eric Noveshen have carried on these stock manipulations in other stocks such as Oriens (OTHM), changed name to Pure Hospitality (PNOW) in 2014. Stock fraudster hospitality, if you’re an investor you’ll never forget it. 

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EMTA Holdings, INC. v. AJW PARTNERS, AJW OFFSHORE,…..

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Juniper Group v. AJW QUALIFIED PARTNERS; AJW MASTER FUND..

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Allen Licht v. Ajene Watson, et. al 

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More details of this case found here: 

https://ericnoveshen.wordpress.com/2015/09/25/highlights-of-noveshen-pump-and-dump/

More information on stock shorting:

Regulators Investigating Firms Sub-Account Use in Shorting Stocks

Eric Noveshen anti freedom of speech

Eric Noveshen’s Biggest Financial Scam – Money Laundering Through Consulting Fees

Eric Noveshen Securities Fraud, Chapter One:  Medgen

Look at the Medgen connection. Funds were laundered through Medgen via consulting fees..Drill inta those underlyin docs that support the 800k…at least a small portion.” 

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Source – http://www.investorshub.com 

If you want to understand a story you have to start at the beginning. Why was Eric Noveshen issued a federal indictment in 2010? How did Eric Noveshen get in a position to loan Automatic Slims over $1-million dollars in 2006? How did Noveshen get so tight with Arthur Robbins? How did Noveshen get in a position to pay Cosi $400,000 for the franchise rights to open shops in South Florida? – Medgen.

We love Investorshub.com – its essential if you want to learn about penny land. In particular these screen names share a wealth of knowledge -Janice Shell, cyberbullymouse, nodummy and renee are just some who post essential information.

We can’t forget pdgood, who once said his info might be early, but it’s never off topic. We should have looked into his advice regarding the Eric Noveshen scam story long ago.

Here’s how Noveshen ended up with all that money. Noveshen was a PIPE deal finder for a New York hedge fund called NIR – that was sued and shut down by the SEC for many securities violations in 2011. Noveshen found small or struggling companies that needed funding. The white knight would offer funding from NIR, with a catch. The company had to pay large fees for PR, to a PR company chosen by NIR.

Here’s where it gets twisted. Boca Raton based company Medgen supposedly was “establised to manufacture, sell and license healthcare products” according to a company report below. But they didn’t make money doing that so “management started a Financial Consulting service.” – The PR service NIR required companies they funded to use. 

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The consulting fees show up in the financial reports that PD said to drill into. He was point on, 100% correct.

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Source – http://www.investorshub.com

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In the end of 2007, Medgen reported a 191% increase in YTD revenue. What? Sounds like those impossible Madoff numbers. But it wasn’t from their BS snoring solution it was from consulting fees laundered through an alternative health product company.

In one quarter there were near $800,000 in consulting fees buried in the report. Noveshen had to kicks some of that back to Daryl Dworkin who was Noveshen’s insider at NIR. In 2010 Dworkin pleaded guilty to taking kickback money from two PIPE deal finders, Eric Noveshen was one of them.

http://www.forbes.com/sites/streettalk/2010/07/08/former-nir-group-analyst-pleads-guilty-to-securities-fraud/#27be74c47074

Corrupt Pipe Deal Finder 5

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What a scam huh? We told you Noveshen was a great financial scam artist. Read em for yourselves here:

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Medgen report 2008

2nd quarter ended 3/31/08, Product sales: $72,937    Fees Consulting Services: $419,411  ??

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Did no one think it odd that a company that produced natural health care products suddenly added “consulting” and “PR services” and revenues suddenly shot up 191%?

Our information might be early, it might be late, but it is never off topic. When Noveshen tells you this site is full of hogwash “drill” into the documents for yourselves folks. Wish we had long ago. If we can save one person from being defrauded by Eric Noveshen then we can sleep at night without Snorez!

We wonder, the federal indictment that Noveshen got sealed by rolling on NIR’s Daryl Dworkin in 2010, was Noveshen exonerated of all the money laundering through Medgen too or was he just let off the hook for paying kickbacks to Dworkin? Pocketing a nice cut of $800,000 a quarter for a year isn’t chump change.

As pd said, “THE OCTOPUS HAS MANY TENTICLES” – Noveshen’s financial scams are still going on, this very day in June 2016. Don’t get played by this financial playa! 

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http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81487405

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https://ericnoveshen.wordpress.com/2015/12/09/why-did-the-us-attorney-general-sec-doj-let-eric-noveshen-walk-after-having-him-on-paying-illegal-kickbacks-to-nir-hedge-fund/

Eric Noveshen anti freedom of speech

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.