Private Investor Sues Xumanii and Publishers of "Awesome Penny Stocks" and "Select Penny Stocks" Newsletters for Violation of A
May 14 2013 - 1:01PM
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 ยง 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.
CONTACT: George Sharp
george@clippercp.com