1. Once upon a time, a few men get together from Vancouver. They bring in a man from Oman, two from Jersey, one from Switzerland and one from the UK. They buy a shell from a car salesman in Vancouver and back it up into a little dead pubco. Magically, shares get issued in Panama.
2. The magic shares from Panama give the Vancouver guys control of the shell. Weirdly, addresses in Mexico are used for some shareholders (Hells Angels perhaps?). They hire a porn film business manager to manger the pubco. Fat consulting contracts are entered into. They wire
3. money to the Marshall Islands and set up some companies where you can’t find out who owns the shares in order to get a bank account and brokerage account. They transfer shares to those entities. They hire promoters to tout the pubco with false positive news. The stock shoots
4. up from $0.17 per share to $6.35. Our Vancouver dudes sold 45 million shares at the height of the fake news pumping. They made US$78,000,000. Possibly, they buy some Ferraris and mansions in Vancouver. The price collapses to $0. Real shareholders have nothing - their money
5. got transferred to the few who controlled shares and sold at the height of the pump. SEC did an enforcement action. Company only ever had US$1,000 in revenues.
Take aways:
A. Vast majority of pump & dump frauds have a connection to Canada. It’s from mining ⛏ culture days.
Take aways:
A. Vast majority of pump & dump frauds have a connection to Canada. It’s from mining ⛏ culture days.
6. B. Vast majority of them involve repeat nodes in a network (players, facilitators, shell sellers, shell hunters).
C. Many just press reset button and do it all over again. If one can take out by operation of law, those threat actors from securities regime, it’ll get better.
C. Many just press reset button and do it all over again. If one can take out by operation of law, those threat actors from securities regime, it’ll get better.
7. D. In my opinion, vast sums of proceeds of crime flow thru Vancouver from pump & dumps that are never reported b/c, as FBI notes, there are massive AML gaps in comprehending securities fraud among lawyers, auditors, banks, brokers. It’s a predicted offence.
8. E. ... And once upon a second time (you sittin’ down for this?), that little shell that grew up to be a pubco whose principals were charged with a fraudulent pump & dump, came back to life and would like to sell you shares in its reborn cannabis coffee company. #nothanks
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