Case Study Update on SNPK: How the Scam Works and Who is Behind the Promotion

In the last post on SNPK (SunPeak Ventures) http://wp.me/p1PgpH-z5 we discussed toxic convertibles (“Death Spiral Converts”). Since then, the price has doubled as the email blasts and press releases pour forth, “MASSIVE upmove, ROCKET price rise, TO THE MOON, Next Price targe, $5!” I am missing out on  SPECTACULAR gains!!!  When I went to do my typical company visit, all I found was a P.O. Box on Long Island.

For a more detailed analysis of how the scam works: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73392869#

In a nutshell, various promoters receive “free” stock and then sell on the price rise as the fools rush in.

SNPK was set up from day one to put shares that cost next-to-nothing into the hands of undisclosed insiders using Panamanian based business entities with hired officers as a front so that these insiders could dump their shares during a paid promotion and make out with millions of dollars in profits.
These Panamanian based business entities have extremely strong links to Eric Van Nguyen’s promotional companies leaving this poster very confident that Eric Van Nguyen and others close to him may really control the shares being held in the name of the anonymous Panamanian based entities.

Awesomepennystocks only wants you to buy SNPK shares so  those Panamanian based entities can sell their shares.  The company started spewing press releases at the same time as the paid promotion started. The company is involved in helping with the insider enrichment scheme.  SNPK sold those shares for pennies to those Panamanian based entities then forward split those shares 45:1 to increase the profits made from the selling of those shares.

The plan is to haul in profits while illegally manipulating the stock through promotional spam and wash trading, eventually leaving a bunch of gullible impressionable bag holders in their wake.  The recently confirmed involvement of the regulators asking questions is probably going to hurt APS’s plans to enact their insider enrichment scheme.  Awesomepennystocks is trying to put a positive spin on things and keep investors from selling their stock before the Panamanian based entities can finish unloading theirs. See below:

Habana Investments got 350,000 shares for $1,750 ($.005/share) which after the forward split became 15,750,000 shares ($.00011/share)

CHP Investments got 350,000 shares for $1,750 ($.005/share) which after the forward split became 15,750,000 shares ($.00011/share)

Verna Thompson got 350,000 shares for $1,750 ($.005/share) which after the forward split became 15,750,000 shares ($.00011/share)
When the original SNPK shell was first set up 8 entities were given 350,000 shares of SNPK for $1,750.

What will happen?

How can this happen? Who will stop this? The price promotion/scam stops when there are no more fools left to sell to then the price will collapse “mysteriously.”

Will the SEC or Attorney General step in to “save” investors from themselves? No, the government is too busy preparing to fence-in its citizens from escaping. Go here:http://www.truthistreason.net/senate-bill-1813-owe-taxes-your-passport-and-travel-is-denied  What is next?  If you owe a parking ticket, then without due process, your passport–after you are stripped searched–will be revoked. If only we had a constitution that was respected. The Sheeple won’t act.

I will continue to report on the on-going saga of SNPK. Who needs entertainment while this unfolds. Like a horror film; you don’t know the precise ending–just that the scene will end badly.

15 responses to “Case Study Update on SNPK: How the Scam Works and Who is Behind the Promotion

  1. I’m really surprised that the SEC or US Government is doing nothing about this. More sophisticated frauds like Enron or Worldcom that go undetected is can be overlooked but something as simple as this?

    Here, I thought that the US securities law is the most complex and heavily regulated. The case here shows quite a different picture.

    • agewisdom, I’m sure if wanted to get the SEC involved in this stock, all you’d need to do is short the stock and distribute a write-up to many investors as to why SNPK is a pump&dump. Of course, it is likely just as probable they would blame you for market manipulation as they would actually go after SNPK…

      • scott,

        Geez, didn’t realize that these cases were so pervasive. I knew the SEC was understaffed and ahem… not all that competent, but to this extent? Well, it’s an eye opener to say the least.

        Sigh, well guess the situation is not all that different here in Asia.

        • I’m actually not sure how pervasive they are… the impression I get is that wealth transfers to management can/will occur if the wrong people are put in charge, but how blatant they are willing to be depends on what country they’re in. If you read Einhorn’s book Fooling Some People All the Time, you’ll start to see shenanigans that go on. Other blogs out there also seem to document other sorts of (alleged) frauds. There has been a ton out there recently in the past few years about Chinese reverse mergers.

          • Scott,
            Thanks for the valuable input. So much to learn, so little time. You’re right about the great blogs around (this being one of them :), that are informative about some problematic companies.

            It’s a shame though that the mainstream media are doing nothing until after the fact. It makes it appears that such frauds are undetectable although they are. Bernie Maddoff being a prime example.

  2. You are not in Kansas anymore, Todo (Reference to the Wizard of OZ).

    Look in a Dictionary–the synonym for incompetence has SEC listed.:)

  3. Hah… shows just how little I know. Thanks for the kick in the butt
    http://bestofcalvinandhobbes.com/2011/10/a-swifty-kick-in-the-butt-is-for-sale/

  4. Age wisdom, here’s the reality about the SEC, article of David Einhorn & Michael Lewis. The former who had his own battles with the SEC trying to convince them Allied Capital was a fraud for … 5years. http://www.nytimes.com/2009/01/04/opinion/04lewiseinhorn.html?pagewanted=all

  5. I don’t imply ALL penny stocks are scams, but it is buyer beware. Don’t expect the SEC to protect you from the wolves. Be skeptical.

    • I agree it’s caveat emptor in a capitalist system. It’s just that the existence of such cases just makes one question, why the need to have the SEC in the first place? It would just be a waste of resources.

      All these while my perception was that the SEC is reluctant to go after the big fish (i.e. Madoff, Big Investment Banks) but was doing a reasonable job on the smaller fishes. Now, I find out that it’s just as bad there.

      No wonder some people say the stock market is as bad as a casino. Plenty of sharks out there. Luckily there’s some light house around helping one find one’s way around 😀

  6. If this probable p&d concerns you, the Philadelphia SEC office is the one with primary venue. Give them a call today, e-mails are not very effective.

    Ask for Daniel Hawke or Brendan McGlynn.

  7. I had my Financial Advisor/Broker look into these characters since I was interested in picking up a large amount of shares. Since they are a large brokerage firm, they were “not allowed” to purchase. My money is still “safe” in my money market account (making a pittance in interest income) and waiting for something reputable to play with. Thank God my financial advisor used to work for a “penny firm” and her hackles were up right away.

    What are our public servants-“SEC” (paid by our tax dollars)-doing on the job? Granted, not every issue is as earth shattering and multi-billion dollar all encompassing like Enron was; but this could have been someone’s cute little Grandma on a fixed income trying to make ends meet by investing on a “sure thing” so she could finally afford her medicine AND her groceries!

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