SAN DIEGO, May 14, 2013 (GLOBE NEWSWIRE) -- Private citizen, George Sharp, has named the publishers of a number of well-followed penny stock newsletters, as well as the companies they promote as defendants in a new civil action for violations of California Business and Professions Codes 17529.5 (Anti-Spam). The complaint alleges that the defendants engaged, and continue to engage, in a scheme to disseminate spam emails in order to artificially create a marketplace for the stocks of worthless companies at artificially high prices. The Complaint was filed by George Sharp in the San Diego County Division of California Superior Court (Case No. 37-2013-00048310-CU-MC-CTL) on May 13, 2013.
Named as defendants in the case are: Degroupa Tenner Morales Media Corp. and Centro Azteca S.A., the current and former publishers of the Awesome Penny Stocks series of newsletters; and, Victory Mark Corp Ltd., the publisher of newsletters Select Penny Stocks, Preferred Penny Stocks and Penny Stock Heroes.
Several companies promoted by the newsletters were also identified as defendants, including: Xumanii (OTCQB:XUII); Harbor Island Development Corp (OTCQB:HIDC); Red Giant Entertainment, Inc. (OTCQB:REDG); VuMee, Inc. (OTCQB:VUME); Pub Crawl Holdings, Inc. (OTCQB:PBCW); PacWest Equities, Inc (Pink Sheets:PWEI); Amwest Imaging, Inc. (OTCQB:AMWI); Goff Corporation (OTCQB:GOFF); Swingplane Ventures, Inc. (OTCQB:SWVI); World Moto, Inc. (OTCQB:FARE); Taglikeme Corp (OTCQB:TAGG); and, Pharmagen, Inc (OTCQB:PHRX), which was known as SunPeak Ventures, Inc and traded under the symbol "SNPK", during that promotion.
In his complaint, Mr. Sharp states that the Defendants employed devious and deceptive tactics, including using offshore email servers in order to hide the true source of the spam emails, in their quest to conduct stock fraud, in what is commonly known as a "Pump and Dump" scheme. Many of the emails distributed doctored up, phony analyst projections of outrageous price targets, none of which have ever been close to being achieved. In spite of multiple attempts by the Plaintiff to opt out of these unsolicited emails, the spam continues to be sent to his inbox.
Mr. Sharp, expressed concern for investors in Xumanii stock, the current subject of just such a Pump and Dump scheme perpetrated by these defendants. As virtually every share of Xumanii stock was held by just a few individuals prior to the commencement of the current promotion campaign, Mr. Sharp fears that investors in Xumanii stock will see the kind of harsh losses typically realized as a result of such campaigns. Mr. Sharp alleges that hundreds of millions of dollars have been lost by investors in schemes concocted by these defendants. According to Mr. Sharp, at least two of the defendants' 2012 promotion subjects have been issued Cease Trading Orders by the United States Securities and Exchange Commission (SEC), including North Springs Resources Corp., which traded under the symbol "NSRS", and Superior Venture Corp, which traded as symbol "SVEN".
Under BPC § 17529.5, violators are subject to pay damages of up to $1,000 for each spam email to each recipient. Mr. Sharp alleges having received at least 1,204 spam emails from the defendants.
Mr. Sharp provided 24 hours advance notice of this litigation to the defendants, in order to give them the opportunity to warn shareholders, if they so choose.
Mr. Sharp holds no interest in any of the stocks mentioned.
Updates to this litigation may be viewed by following Mr. Sharp's tweets at www.twitter.com/goniffs.