AwesomePennyStocks Come to an End

Sometimes the frauds committed on Wall Street are so comical that you have to wonder how anyone could have fallen for something so silly. Yet it’s also sad that gullible investors get wiped out.

Bloomberg has a story today on the fall of AwesomePennyStocks and its 26 year-old mystery man. You can read the whole story here, but here’s a sample:

The promotion cited by the SEC involved America West Resources Inc., a Salt Lake City-based coal company. AwesomePennyStocks and another list called PennyStocksUniverse sent messages promoting the company’s shares on Feb. 23, 2012, according to the SEC.

The stock rose as high as $1.80 from 29 cents as more than 7.8 million shares were traded, more than double the total volume in the prior year, the agency said. Babikian sold at least 1.3 million shares for $1.9 million, according to the SEC. America West filed for bankruptcy protection last year.

Posted by on March 17th, 2014 at 11:54 am


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