The Spam Diaries

News and musings about the fight against spam.
 by Edward Falk

Monday, March 12, 2007

First SEC suspendee cries Joe Job

On Thursday, I wrote about the SEC's action in suspending trading on 35 companies which had had their stock promoted via pump-n-dump spam.

On Friday, the first of those companies cried foul. Red Truck Entertainment has issued a press release claiming that they were unfairly listed because their parent company, Falcon Energy, had been touted in a pump-n-dump scheme.

According to the press release, Red Truck had very little to do with Falcon Energy prior to the reverse merger, and further Falcon Energy was not responsible for the stock spam that got them listed.

1 Comments:

Anonymous SiL said...

I think it's a bit of a misnomer to describe their response as being a claim of "joe job." Having a connection with a previously-spammed company (Falcon Energy) is indeed suspicious, but further suspicion is cast when the stocks for their own company was *also* spammed. Also: it doesn't matter who spammed it: it's illegal to do so. The SEC is going after companies whose claims and press releases are considered "fishy". That's what the suspension is for. If they turn out to be legit: good for them. But let them really prove it to the SEC.

I and several others are very interested to see what happens with GDKI. It strikes me as odd that for three full years they can continue to claim to be "working on" all kinds of entertainment industry projects, and yet not one single entity in the entertainment industry has ever heard of them. The only way anyone's heard of GDKI is via spam, which tells you how legitimate that company is.

I also notice that in the time since this ruling, I've seen a whole slew of brand new stocks begin to be spammed relentlessly. I hope this means that the spammers are indeed running out of cash in a bad way. One can only hope.

SiL

5:32 PM  

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