Im always tryin to explain to the rumpers that there are no such things as boiler rooms trying to "steal shares on the cheap",,,,,,,that is a fatasy. But there are rumper flumper boiler rooms.................its a mainstay with many pink sheet listed companies (cough cough).................
Ive posted many articles in the past. Heres one that just came up aka SEC got a convictions:
Id be happy to provide the SEC the receipts when/if this rumper flumper implodes...
SEC wins permanent ban for Arias Intel's Hackett
2024-11-19 19:59 ET - Street Wire
Also Street Wire (U-ASNT) Arias Intel Corp
by Mike Caswell
The U.S. Securities and Exchange Commission has won a penny stock ban for Andrew Hackett, the Toronto man jailed in the United States for the pump-and-dump of Arias Intel Corp. in 2017. The government claimed that Mr. Hackett ran a scheme to boost Arias Intel as a supposed social media listing though phone rooms and manipulative trades. Unfortunately for Mr. Hackett, one of those included in the scheme was co-operating with the FBI.
The ban for Mr. Hackett is contained in an order handed down on Monday, Nov. 18, by a federal judge in San Diego. In addition to barring Mr. Hackett from penny stocks, the judge has entered a permanent injunction against any future violations. The order was handed down summarily (or without a trial), Mr. Hackett having previously been convicted on related criminal charges.
Monday's order is a footnote to a case in which Mr. Hackett received four years in prison for the Arias Intel scheme. The evidence at Mr. Hackett's trial included testimony of a boiler room operator as well as text messages in which he and others agreed on a target price for Arias Intel. A California jury convicted him on Aug. 2, 2021, following a five-day trial, and the judge handed down the four-year jail term.
The ban comes despite Mr. Hackett having since asked the judge to reopen his criminal case, saying there is new evidence that could clear his name. He claims that there are links between his case and a man called Alexander Smirnov, an FBI informant since charged for making false statements. Mr. Hackett has asked for a new trial, contending that the government's "intentional non-disclosure" of evidence related to Mr. Smirnov allowed prosecutors to mislead the jury and deceive the court. The judge has yet to rule on his motion.
Details of the charges are set out in a civil complaint that the SEC filed on July 13, 2018, in the Southern District of California and in related criminal filings. The charges arose from multiple schemes run through a touting website called TheMoneyStreet, which was run by a California man named Gannon Giguiere (who was also a defendant, and received one year in prison). The part of the scheme that involved Mr. Hackett was the pump-and-dump of Arias Intel, which occurred in 2017.
According to the government, Mr. Hackett identified Arias Intel as a company suitable for a pump-and-dump when an associate called him about a potential investment in the company. At the time, Arias Intel was small and publicly traded, and Mr. Hackett had inside access to the company's chief executive officer through his associate. Mr. Hackett subsequently lied to transfer agents in order to obtain tradable shares and set up phone rooms to pitch the stock, the government said.
Mr. Hackett's part in the scheme, as described by the SEC, included working with what he thought was a group of corrupt brokers. His understanding was that the brokers would be buying shares of Arias Intel using the accounts of customers. In return, they expected to receive a 30-per-cent kickback, the SEC claimed.
Unbeknownst to Mr. Hackett, the person who was supposedly making those arrangements was co-operating with the government. As a result, Mr. Hackett's conversations with that man were monitored by law enforcement. In one conversation, the co-operating witness told Mr. Hackett that the stockbrokers were nervous because the trading could attract scrutiny from "the alphabet crew," a reference to law enforcement.
The witness asked Mr. Hackett to have Arias issue news to justify the buying, a plan that Mr. Hackett agreed to, the SEC claimed. The witness told Mr. Hackett that if the "abc crews come around, you know, nobody needs to worry about orange jump suits, you know what I'm saying."
The other defendants in the case included Vancouver-area defendant Kuldeep Sidhu, who pleaded guilty and served about a year in jail. Two others received six months of home confinement. The case spawned related actions against others as well, including Vancouver's Oliver Lindsay. Prosecutors cited him for the promotion of a company called Kelvin Medical Inc., a supposed medical device maker. That promotion was also run through TheMoneyStreet. Mr. Lindsay pleaded guilty and received 17 months in prison.