Anatomy of a SCAM
Anatomy of a SCAM (Stocks Con Artists Mined)
Title of a book.
Contents are here in my mind.
Problem is, i dont know how to write. *barangisi*
SCAM – Stocks Con Artists Mined is an original abbreviation.
This is a work in progress. I will put my thoughts here from time to time.
This page explores the possibility that Con Artist may use LEGIT FUND RAISING
facility for their own GREED. Companies with very good track records and governance
does not belong to this group.
Now who says unicorns dont exist. Laway lang ang puhunan. *gigols*
Posted Monday, July 23 2012, 8:53am
Chapter ____ : The SROd – The Stock Rights Offerings daw.
Con Artists used the SRO proceeds as one of his/ her or their personal cash cows.
Below is an illustration how the CON was made.
Con Artists established Con Companies naming it a “Trend Company”. Say the trend now is mining. Con Artists will name it PNN Gold. PNN Gold stands for Pera Na Naman Gold. Now, he/she/they will established more entities with mining sound like companies. Con Artists then will issue a SRO for his/her/their listed company. Since it is a listed company, the so called company is obliged to disclose the proceeds of the SRO.
Said listed firm then will used that proceed to buy the con artists’ companies, tagging it as investments. Investments in companies with no operations. Proceeds of the SRO gone like magic. Con Artist got the proceeds. Easy money.
Chapter ____ : The Private Placements / Debt to Equity conversion
1) Company goes for a PP at par, but before that, jockeys will push the price up. PPs are done in a fashion that identities of the subscribers are unknown to the public. Normally, authors are cayman wannabees.
PP’s are treacherous specially if the name of the subscribers are unknown even if you google it up. be wary of those.
Advances / Debts being converted to Shares using a time machine of some sort. Aside from unicorns, time travel also do exist in duping shareholders. You dont need a DeLorean or brains of Dr. Emmett Brown for that fix. A simple ek ek is all a con needs.
2) Company goes for a program selling (could take months / yrs) using “whatever account”. anyways, company then offer a private placement to “whatever account” at way to discounted price (of course). Purpose? Replenish. Nuf said.
Chapter _____ : Joint Ventures.
Oh i love JVs. Specially if 2 “bulok” companies have one.
Chapter _____ : The Stuntmen
These are investors, rogue fund man, ib’s, analyst, private equity handlers or just plain individual with enormous greed. They use flirtatious, i mean fictitious accounts that leaves no trail of their shit, oh well, crap, but not until they got caught and eventually “transferred” to another crap hole. They can be creative by having a cayman account, supposedly feeling foreign “daw”. They can moved a worthless garbage (basura) stock to new levels of greed because the have the “funds” or they use “other people’s money”.
Stuntmen are fond of buzz. their genre include buzzing around that they have infos on mergers and acquisitions, takeovers, backdoors and the likes. usually they let the gossipers think they have a “hand” on it for the story to look legit.
Chapter ____: The Cayman Wannabees
these are locals, big private equities, institutions, legit or not, that uses foreign entity tru cayman island, bvi (british virgin island) and bermuda triangle.
These so called investors can have a wannabee account using tax safe haven islands mentioned above. You google on how to set up a cayman account and you’ll be amazed that one can have a wannabee company for as low as 150 bucks. You chip in a grand and you have yourself a virtual office and a virtual secretary laying naked, i mean just a virtual secretary answering calls. *ahem*.
A local wannabee who doesnt have these cayman et al accounts may resort to using “foreign” sounding name brokers as a strategy that foreign buying or selling is present.
Chapter ____ : The Super Saiyan
Chapter ____ : The Pasaload
Chapter ____ : The OB
Before the binary options came into being here, there was a box we used to “toy” around. it’s a hedging tool, I was part of the beta test.
Options backdating is the practice of altering the date a stock option was granted, to a usually earlier (but sometimes later) date at which the underlying stock price was lower.
Here, we find ways to do the extra mile of “setting aside on a later date” our “option/s”. One ploy is for the company to do cash advances, or subcriptions and later on “convert” it to equity when of course all events are favorable to “them”. If the weather is not yet fine, that “later on” will always be synonymous to “when able”.
It’s just like a long term investment… without the capital.