SAN DIEGO, May 19, 2013 (GLOBE NEWSWIRE) -- George Sharp, announced today that the first subpoenas have been issued by the court in regards to the previously announced litigation (San Diego County Division of California Superior Court Case No. 37-2013-00048310-CU-MC-CTL) for violations of California Business and Professions Codes 17529.5 (Anti-Spam). In his complaint, Mr. Sharp alleges the spam emails are part of a scheme to artificially create a marketplace for the stocks of near worthless companies, at artificially high prices, in what is commonly known as a "pump and dump" scheme.
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 these newsletters are also identified as defendants, including the subject of the current promotion, Xumanii (OTCQB:XUII).
In the course of the promotion, startup Xumanii, a one-man operation purportedly headquartered in the Cayman Islands with total assets reported to be $80,000 and liabilities of almost a million dollars, claims to have established business relationships with a variety of performers and infers endorsements from megastars. By the company's own admission, none of these relationships will add revenue to the company's bottom line. Mr. Sharp cautions investors that celebrity name dropping or endorsements are often used to attempt to attempt legitimize a penny stock fraud, often without the knowledge by the celebrity. Recently, celebrity relationships have been used to tout FrogAds, Inc. (Pink Sheets:FROG) and Genmed Holdings Corp. (OTCQB:GENM), two schemes for which 14 parties were recently indicted by the Grand Jury for securities fraud, under complaints 125526814 USA v Mazur Et Al. and 125529135 USA v Possino Et Al.
Mr. Sharp, advises investors in Xumanii, that every Awesome Penny Stock Ponzi-scheme style promotion, has left a trail of those whom have lost almost their entire investment, totaling hundreds of millions of dollars in losses, including those on past promotions conducted on fellow defendants, VuMee, Inc. (OTCQB:VUME); 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). Several hundred of these victims have written emails of gratitude to Mr. Sharp, since he first announced this litigation.
Investors should note that it is never a good idea to invest in stocks advertised in any manner, including email tout sheets, conventional mail brochures, and newspaper/magazine ads, nor is it wise to rely on the advice posted on the internet message boards which are controlled by shills for the promoters.
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.